Group Health Market Shrinks

Federated Insurance Company has announced its withdrawal from the group health marketplace, citing “uncertainty and upheaval in the health insurance market” brought about by the Affordable Care Act.

“Federated does not see an end to the uncertainty surrounding the ACA,” the insurer said in a statement, adding that current proposed changes in the health care law do not alter the decision. “Recent legislation proposed in Washington gives little confidence that long-term success in this product line is sustainable.”

The exit from group health, as well as group life and group disability, is effective December 31.

In the statement, the company said that in the seven-plus years since the ACA became law, “Federated has invested tremendous time, effort and resources to keep up with the frequent and unpredictable changes in the ACA to provide clients with options for group health coverages for their employees.”

Source: Owatonna.com