Once finalized and implemented, the Health Care Reform laws have affected companies and individuals differently throughout the entire health care industry. New policies and standards that were put in place aimed at evolving the health care system, while forcing other changes to be made. As companies work to comply with the new laws, many are seeing the affects on their business model as a whole.
Assurant Health, a health insurance provider, recently announced its plan to sell or close the health insurance and employee benefits division of the company. In a statement released by Assurant, the company estimates that it will report a loss of $80 to $90 million for the first quarter of 2015. The huge financial loss is being attributed to multiple factors; one major one being the laws implemented by ACA.
So how has Obamacare directly affected businesses similar to Assurant? Here are a few aspects of the law that has caused companies to feel pressure financially while attempting to comply:
- Providing coverage regardless of pre-existing conditions
- Requiring plans to cover a package of essential benefits
- Spending at least 80% of every premium dollar on health care
The new policies that have been implemented now require companies to make expensive changes in order to comply. Businesses look for different ways to internally cut costs, whether that is by decreasing staff or, like Assurant, deciding to close down a non-profitable division of the company.
Assurant Health’s decision to close their health insurance and employee benefits division is one of the first major casualities of Obamaacare. Do you think there is more to come in the future? Share with us your thoughts by commenting below.