Owatonna Insurer Quitting Health Insurance Business
Owatonna, MN (KROC-AM News) - A Minnesota-based insurance company is pulling out of the health insurance business and is blaming uncertainty surrounding President Obama’s health care law.
Federated Insurance says it will withdraw from the group health marketplace at the end of this year. The insurance had been offered to businesses seeking coverage for their employees in Minnesota and 22 other states. The move also affects Federated’s group life insurance and group disability insurance products.
Federated CEO Jeff Fetters cited the time and resources that have been committed to dealing with numerous and unpredictable changes in the Affordable Care Act for the decision. He noted the move will allow the firm to focus on its growing property and casualty, individual life and disability income insurance products.
Federated is headquartered in Owatonna and the change is expected to impact nearly 90 employees at the facility. The insurer says those employees are expected to be offered other positions within the company once the withdrawal from the group health insurance market is completed.