Milwaukee-based Assurant health has notified employees that approximately 108 positions are being eliminated by the end of the year, 65 of which are at the Milwaukee office.
The company is citing the “elimination of underwriting for certain products under the Patient Protection and Affordable Care Act” as the primary reason for eliminating the positions.
“Under the health care reform law, starting in 2014, insurers will be required to provide guarantee issue coverage and will no longer be able to apply underwriting practices such as reviewing for health status,” said Assurant spokeswoman Mary Hinderliter. “This directly impacts the role of a health insurance underwriter, and as such, we have had to make the difficult decision to reduce a number of underwriting positions.”
Below is the full statement from the company regarding the job cuts:
“Assurant Health notified employees of workforce reductions primarily due to the elimination of underwriting for certain products under the Patient Protection and Affordable Care Act, and to reduce operational expenses. Approximately 108 positions are impacted at the company’s Milwaukee, Boise, Idaho and Plymouth and Woodbury, Minn locations. Affected employees will receive severance based on years of service as well as career transition support. Many impacted employees will remain with the company through the end of the year.
While eliminating positions is always a difficult decision, Assurant Health is adapting to changes in the health insurance industry and ensuring our workforce is appropriately aligned to business needs. In business for 121 years, our company remains committed to serving the unique needs of individuals and small businesses by providing quality, affordability and choice through our broad product portfolio.”