Alliance Insurance Agency Is Taking Over the Midwest: Here’s What You Need to Know
Midwesterners are being asked to pay more for health insurance because the company they chose to buy from has left the region, according to a new report from insurance watchdog group Alliance.
While the midwest continues to be the healthiest region in the country, a combination of rising premiums and a lack of competition from other insurance companies have resulted in the region’s insurers offering lower premiums than the rest of the country.
In a letter to Alliance, the Consumer Federation of America and the Center for Responsible Lending wrote that the insurer was taking over Midwestern health care because it’s the most expensive region for insurance companies to operate in, with higher premiums and higher deductibles than the average region.
As a result, Midwestern insurance companies are “going into a market where competition has not yet been created,” according to the letter.
The midwest is also one of only three regions where Alliance is taking over, according the report.
“As a consequence of the departure of some of the industry’s leading players, the market for coverage in the midwestern region has become even more competitive,” the letter said.
The alliance will continue to operate under the Midwestern Health Insurance Association.
“A merger of Alliance and the MidWestern Health Insurance Agency will allow Alliance to continue to provide coverage to the MidWest as an independent agency and to continue expanding coverage to new markets in the United States,” the alliance said in a statement.