Tuesday, December 27, 2011

The Coming Squeeze On Private Insurance

One of my friends here in Colorado received this letter from his health insurance company a few weeks ago.

This will just be the beginning of the shakeout in the private market due to "uncertainty brought on by the regulatory environment" (i.e., the slow strangling of the private insurance industry under ObamaCare):
Dear [name omitted]

We are writing to inform you of an important decision World Insurance Company ("World") has made regarding individually underwritten comprehensive major medical insurance in Colorado, which impacts your coverage.

This letter contains important information about the cancellation of your policy/certificate.

Like all companies, we continually monitor our business strategy to ensure a competitive presence in the rapidly changing insurance market. With the changes in the major medical insurance marketplace and the resulting uncertainty brought on by the regulatory environment, World has decided it is no longer able to provide the kind of major medical protection our customers have come to expect. During a recent review of World's overall businesses, the difficult decision was made to exit the individually underwritten comprehensive major medical insurance business in all of our existing markets.
You can click on the image below to see it full size.

Brian Schwartz also discusses this topic at, "State regulations force insurers out of market, Obamacare will make it worse".