Assurant Health to Close Business by 2016
Health brokers received an e-mail from Assurant Health this week indicating that the carrier plans to close all individual health business.
According to Assurant, the company intends to close both IFP (individual & family plans) and Employee Benefits divisions and either 1) sell them off to another carrier or, 2) to simply close them by end of 2015 if no buyer can be found. The decision likely hinges on excessive losses on individual health under the ACA.
As it stands today, Assurant will continue existing policies until the end of 2015 (and next open enrollment). They state that they will not sell any health insurance in 2016 as Assurant Health.
Assurant began in 1892 as the La Crosse Mutual Aid Society in Wisconsin. The also operated for many years as Fortis and also Time.
For California residents, the loss of Assurant (with it's very broad Aetna network) represents the third carrier to exit the market since ObamaCare went into effect. United Healthcare (UHC) closed PacifiCare and Aetna also left prior to January 2014. Cigna remains active however only operating in 10 counties in California in 2015.