Advertise
Resources
Member, Beacon International Group, Ltd.
DES MOINES, Iowa—Principal Financial Group Inc. said Thursday that it is exiting the group medical insurance market and has reached an agreement with UnitedHealthcare to renew coverage for Principal clients during the next 36 months.
“The medical business continues to be one that undergoes rapid change, which would mean investing additional capital into the business to be able to offer competitive products. For us, that just does not make sense,” Larry Zimpleman, president and CEO of Des Moines, Iowa-based Principal, said in a statement.
Principal has operated mainly in the small-employer medical market. The majority of its clients have less than 50 lives enrolled in their medical plans, a spokeswoman said.
While Principal said the unit of UnitedHealth Group Inc. will handle group health insurance for its clients, Principal said it will continue to offer other health care-related plans, including vision, wellness and dental plans.
Principal also will pull out administering medical plans for self-funded employers, but will continue to administer self-funded dental, vision and disability plans, a spokeswoman said.