KEYC - Owatonna-Based Federated Insurance Announces Withdrawal From Gro

Owatonna-Based Federated Insurance Announces Withdrawal From Group Health Insurance Marketplace

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Federated Insurance has announced it will withdraw from the group health insurance marketplace.

The Owatonna-based company says the action is in response to the uncertainty surrounding the Affordable Care Act, put in place in 2010.

The change, which takes effect December 31, means Federated will no longer be involved in the group health, group life and group disability insurance marketplace.

The switch means businesses and members will have one less coverage option in 23 states, including Minnesota.

The company says it has 88 Owatonna-based employees that currently work on the group health product. After the switch the company says most of those employees will be take on other roles within the company.