Did your insurance company decide to get out of the insurance business entirely? Many insurance companies have elected to cease offering certain kinds of insurance policies, in response to the new health care reform laws. Some insurance companies are finding the new laws and regulations to be so disagreeable that they have essentially decided to “take their ball and bat and go home”. This can cause problems for the consumers who were getting their health insurance from a company that closed up shop.
If you have been keeping up with the news, then you are already aware that there have been some negative responses to the changes in health care. Insurance companies, in particular, are objecting to the new regulations. One new law states that insurance companies must cover young adults who are under the age of 26 on their parent’s health insurance policy, if the parent’s insurance is of the type that allows for coverage of their children. Another law states that insurance companies are no longer allowed to refuse coverage of a child who has a pre-existing condition. In response, many private insurance companies, including Aetna, Cigna, and WellPoint have elected to stop offering child-only health insurance policies.
Principal Financial Group has announced that it has decided to stop selling health insurance. This company focused on selling health insurance plans to the employees of small businesses. Consumers who currently have a health insurance policy from Principal Financial Group can expect to be transitioned over to UnitedHealth in the near future. Principal Financial has decided that it prefers to leave the market entirely, instead of complying with new regulations. They have also decided to cut 150 jobs immediately, with more to come, at a time when unemployment is still very high. One can expect to see more insurance companies leaving the market as we get closer to the deadlines for compliance with the new reforms.
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