Friday, October 01, 2010

Another victim of obamacare

I've said before that health insurance is not profitable. How do I know? Because if were profitable, companies would be diving into the business; instead they're getting out.

If you don't believe me, ask one of the 1500 employees of this health insurance carrier..........

Principal Financial Group said Thursday that it will leave the medical insurance business, further reducing competition among health insurers in Iowa.

Principal will transfer the renewal rights for its health insurance customers in Iowa and 30 other states to UnitedHealthcare over the next 36 months.

The move will guarantee that all Principal health insurance customers will be able to get a quote for a new policy despite pre-existing conditions, said Iowa Insurance Commissioner Susan Voss.

The decision means the disappearance of the third-largest health insurer in Iowa at a time when half a dozen other small insurers have told the Iowa Insurance Division that they also plan to quit selling health insurance in Iowa.

Great job O. It's all coming together for you.


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