Affordable Care Act (ACA) also known as Obamacare, the flagship complimentary health insurance program for all the US denizens, is proving to be a major setback for insurers, and nine insurance firms are pulling out of Nebraska medical insurance market.
Since August, seven of the nine companies have notified Nebraska of their plans to depart from the health insurance market, as reported by Bizpac Review.com.
The companies, which are leaving the state, said that they are unable to incorporate the changes necessary to comply with the federal health care law, due to their lower footprint in the region. As per the current Nebraska law, insurers are required to notify policyholders in writing of any such changes.
The companies, which have informed to the state insurance department of their intent to stop selling health insurance, include Aetna, American Family Mutual Insurance, Humana, Independence American Insurance Company.
Other insurance firms comprise Reserve National Insurance Company, Standard Security Life Insurance Company of New York, Companion Life Insurance and United Security Life and Health Insurance.
Most recently, Companion Life notified Nebraska Insurance Commissioner Bruce Ramge that the company will leave the market by the year’s end as intensified regulations under Obamacare would make it difficult to continue.
"If they only had a very small number of policy holders, then it would be difficult to recoup the cost" of administrative changes to comply with Obamacare, Ramge said.
The ACA lowers the uninsured rate by expanding public and private insurance coverage. It aims to increase the quality and affordability of health insurance, and decrease the costs of healthcare for individuals and the government.
The law also requires insurance companies to cover all applicants within new minimum standards and offer the same rates regardless of pre-existing conditions or sex. It also mandates all US citizens to buy health insurance or pay a fine starting from January 2014.