A U.S. mandate forcing insurers led by UnitedHealth Group Inc. and WellPoint Inc. to spend 85 percent of revenue from premiums on medical care is the newest front in the battle between the Obama administration and companies over industry profits.
After Symetra Financial Corp. was formed in 2004, the life insurer set up shop in a 25-story glass tower outside Seattle, put its name on the building and pushed the state to adopt more favorable rules for its business.
WellPoint Inc., the second-largest U.S. health insurer, is leading companies that have poured $13.4 million into defeating a ballot initiative that would give California regulators the power to reject increases in health policy premiums.
The package arrived at Cindy Lohman’s home in Great Mills, Maryland, just two weeks after she learned that her son, Ryan, a 24-year-old Army sergeant, had been killed by a bomb in Afghanistan. It was a thick, 9-inch-by- 12-inch envelope from Prudential Financial Inc ., which handles life insurance for the Department of Veterans Affairs.
Therese Vaughan, the chief executive officer of the National Association of Insurance Commissioners, will step down in the first quarter of next year to revise a textbook, the industry association wrote in an e-mailed statement.
United Services Automobile Association, the provider of insurance and other financial products catering to military families, said Chief Executive Officer Josue Robles will retire in the first quarter of 2015.
Jim Donelon, the president of the National Association of Insurance Commissioners, questioned the need for a countrywide halt on approvals of captive insurance deals one day after New York’s regulator said the transactions hide risk.
National Association Of Insurance Commissioners Photos