In a possible sign of things to come in the wake of health care reform, at least one national provider of health insurance has decided to exit that business and instead focus on ancillary benefit products that are popular in the worksite market and other lines.
Principal Financial Group, which will turn over to United HealthCare renewals on policies for nearly 1 million people in 31 states that are set to expire over the next three years, will continue offering life, dental, disability and vision insurance coverage, as well as wellness programs, health savings accounts, retirement plans and investment services.
Among the factors cited: uncertainty over a new rule requiring that at least 80% of insurance premiums go toward medical care and competition with state-run insurance exchanges that are slated to take effect in 2014.
