... ObamaCare style.
Assurant Health is eliminating 130 jobs at its offices in Milwaukee and Plymouth, Minn., by Oct. 1 as the health insurer prepares for changes under federal health care reform.
The company, which sells health insurance for individuals and small employers as well as short-term policies, faces an onslaught of new federal health care reform regulations, including the requirement that it spend 80% of premiums on medical care.
"While it always is a tough decision to eliminate jobs, the health insurance industry is undergoing unprecedented change that requires our company to adapt and transform," Don Hamm, president and chief executive officer of Assurant Health, said in a news release.
Is it a Midwest thing? That whole understated way of conveying impending disaster: ObamaCare may very well ruin us so we're doing what we can to get out in front of the bow wave.
State insurance commissioners are still working on the proposed rules for the percentage of premiums that must be spent on medical care. The requirement is expected to lower profit margins and to force some companies out of the market.
There it is again. We were almost lulled to sleep by this stoic upper-Midwest delivery but snapped-to in time to catch: ObamaCare as written will lose money for health insurance providers and will most certainly force small companies like Assurant Health that offer flexible plans absent over-burdensome regulation, out of business.
By one estimate, health insurers stand to gain 20 million new customers as a result of the requirement that everyone have health insurance under health care reform. Most of those new customers are expected to buy insurance on their own.
First of all, we were all led to believe that of the estimated 47 million uninsured people in this country, ObamaCare would cover 30 million of those. Now, it appears that number has been downgraded to just 20 million. Terrific.
But even still, how bad does a piece of legislation have to be whereby an industry will gain 20-30 million more dues-paying customers and that same industry will still have companies that go under because of that very circumstance?