Two subsidiaries of American National Insurance Company, Galveston, Texas, say they will be discontinuing sales of individual medical expense insurance plans effective June 30.
The companies are American National Life Insurance Company of Texas and Standard Life and Accident Insurance Company.
The decision to cease new individual sales was made after careful consideration of the federal healthcare legislation that was signed into law in March, the company says.
The companies’ individual medical expense plans will not meet requirements of the Patient Protection and Affordable Care Act and its companion, the Health Care and Education Reconciliation Act of 2010, the company explains.
The policies affected by the pullout are primarily catastrophic major medical plans with high deductibles, says a spokesperson.
They do not intend to reenter this market as long as those laws are on the books, the spokesperson adds.
“American National Insurance Company continues to be committed to the health insurance marketplace and will focus on Medicare supplement insurance and large group coverage as well as other supplementary health products,” says an announcement from the company.