Nine insurance companies are pulling out of Nebraska's major medical insurance market, and some of them cite Obamacare as the reason for their departure.
Seven of the nine companies have notified the state of their plans to leave since August. Most of them have a minor piece of the major medical market in Nebraska, and likely don't think it's worth it to make the changes necessary to comply with the federal health care law.
As Obamacare shifts into a higher gear, all Americans must buy health insurance or pay a fine beginning in January. Insurance companies selling individual plans can no longer sell cheaper, bare-bones plans, must offer an array of benefits and cannot deny people coverage because they're sick or old.
Aetna, American Family Mutual Insurance, Humana, Independence American Insurance Company, Reserve National Insurance Company, Standard Security Life Insurance Company of New York, Companion Life Insurance and United Security Life and Health Insurance have all informed the state insurance department of their intent to stop selling health insurance to individuals - and in some cases - groups.
Under Nebraska law, insurers are required to notify policyholders in writing of any such changes.
State Insurance Commissioner Bruce Ramge was most recently informed of a departure Thursday morning, when he received a letter from Companion Life saying they'll leave the market at year's end, noting that increased regulations under Obamacare would make it difficult to continue. Ramge said the new landscape under Obamacare is the major driving factor in the companies' pullout, largely because of the administrative and policy changes they'd have to make.