American Republic insurance carrier will withdraw from the market.
The move means 110 employees will lose their jobs over the next three years — 40 in Des Moines and 70 in Omaha — and signals the widespread anxiety among insurance companies over the raft of regulation resulting from the health care overhaul bill.
“It’s a fairly predictable consequence of the regulation,” said Michael Abbott, the president and CEO of the American Enterprise Group, American Republic’s parent company, which employs about 330 in metro Des Moines and has its headquarters downtown.
This is at least the second Iowa company to exit some portion of the health insurance market since passage of the health care overhaul in March 2010. Principal Financial Group exited the small group health insurance market later in 2010.
Fewer health insurance carriers means less competition. The result will be higher premiums, not lower as promised by the Obama administration.
How is this Obamneycare working for you?