Assurant Health to Be Sold or Closed

[aikenhealth]

Did you see this in the Milwaukee Business Journal?

They are leaving the Health Market as of 2016 if nobody buys them - the Affordable Care Act was not very affordable for them.

Too bad - they had a great PPO - one more Obamacare casualty

 

[BayCityInsGuy]

I think it was poor management and not Obama. In my area Assurant was about $275 a month more expensive than Priority Health out of Grand Rapids, Michigan. You can guess which company I put my clients into.

 

[Yagents]

So..........high premiums attracted few clients which caused them massive losses?

Gotcha!

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Obamacare rates for money-losing Assurant Health among the highest - Milwaukee - Milwaukee Business Journal

These pricing trends may be moot if Assurant Inc. executives go through with their plan to exit the ACA marketplace after suffering losses this year. However, Assurant Health spokeswoman Mary Hinderliter said via email Tuesday the company is proceeding with submitting filings for 2016 while its corporate parent looks to sell Assurant Health.

A buyer of Assurant Health could decide to remain on the ACA exchange.

 

[leevena]

So..........high premiums attracted few clients which caused them massive losses?

Gotcha!

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Obamacare rates for money-losing Assurant Health among the highest - Milwaukee - Milwaukee Business Journal

These pricing trends may be moot if Assurant Inc. executives go through with their plan to exit the ACA marketplace after suffering losses this year. However, Assurant Health spokeswoman Mary Hinderliter said via email Tuesday the company is proceeding with submitting filings for 2016 while its corporate parent looks to sell Assurant Health.

A buyer of Assurant Health could decide to remain on the ACA exchange.

I do not have access to Assurant numbers, but yes, higher premiums/few clients could cause massive losses. Being the most costly plan along with a good network is an easy receipe for disaster. California, and perhaps other localities, use to have a co-op where carriers offered the same benefits, but had different costs/networks/reputation. Over time the most expensive plan would incur losses and drop out. The new "high-cost" plan would become the next victim, until the co-op imploded and is now no longer operating.

 

[brian150980]

Assurant incurred close to $ 40 Mn in losses because of Medical insurance business. Despite that their net profit was close to $80 Mn. So, i guess the decision is correct. Focus on what is working for you.

Brian

 

[tonyisme]

Do you think there could be a shotgun wedding between Assurant and another insurer presided over by HHS, DOI and Gvmt?

 

[somarco]

Do you think there could be a shotgun wedding between Assurant and another insurer presided over by HHS, DOI and Gvmt?

Could be. No reason to.

When those policies lapse they will be easy pickings.

 

[leevena]

Do you think there could be a shotgun wedding between Assurant and another insurer presided over by HHS, DOI and Gvmt?

No. No reason for it, membership will be sold at pennies on the dollar.

 

[tonyisme]

Yeah who would want a business of open enrollment for 2 months of the year basically you can only sell your product for a limited time....

 

[Yagents]

Assurant confident about benefits unit sale | LifeHealthPro

For the health unit, "We remain focused on mitigating losses," Pagano said.

For the benefits unit, he said, "We are highly confident in a sale."

Colberg said Assurant is not trying to sell the health and benefits businesses as a package. "We believe the buyer universe is very different for those two businesses," Colberg said.