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Assurant selling or closing health insurance division due to Obamacare

MILWAUKEE (AP) — Assurant Inc. says it will sell or shut down its health insurance division that has struggled financially since the introduction of the federal Affordable Care Act. It sold health plans to small employers in Kansas and 33 other states.

Assurant Health, headquartered in Milwaukee, is expected to report an operating loss of up to $90 million in the first quarter following a loss of $64 million last year.

The company, which reported $2 billion in revenue last year, has sold health insurance to individuals in 41 states and on 16 marketplaces set up under the Affordable Care Act.

The Milwaukee Journal Sentinel  says federal health care law negated one of Assurant Health’s strengths — determining which customers are the best risk. The law bars insurers from turning away customers because of pre-existing health conditions.

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