Federated withdraws from group health marketplace
OWATONNA — The Owatonna-based Federated Insurance Company has announced that it is withdrawing from the group health marketplace, citing the “uncertainty and upheaval in the health insurance market” brought about by the Affordable Care Act as the cause of its departure.
“Federated does not see an end to the uncertainty surrounding the ACA,” Federated said in a statement released Wednesday, adding that currently 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, will be effective on Dec. 31, the company announced. Notice of Withdrawal letters are being sent to insured businesses and members in the 23 states where Federated offers group products.
“We are disappointed that forces outside of our control have put us in this position,” said Jeff Fetters, chairman, president and CEO of Federated.
Read more: http://www.southernminn.com/owatonna_peoples_press/news/local/article_b049628a-681d-50b7-981f-2331f5611e73.html
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