MILWAUKEE (WITI) -- Some 1,200 Employees of the Milwaukee-based Assurant Health are facing an uncertain future. That's because this week, Assurant's parent company announced plans to either sell the business or just close up shop.
"They've been signalling in the last year or two that they're definitely having some challenges," said Rich Kirchen of the Milwaukee Business Journal. "They've been losing money. The company has not fared well as the affordable care act has rolled out."
In a statement on Assurant Health's parent company website, it said the following:
"The company expects Assurant Health to report a net operating loss for the quarter in the range of $80 million to $90 million. APproximately half of the loss is attributable to a reduction in 2014 estimated recoveries from the Affordable Care Act (ACA) risk mitigation programs. The remainder reflects elevated claims on 2015 ACA policies."
"A lot of people who lost their insurance or didn't get insurance on the exchange signed up for Assurant products. And a lot of those people were not, it was a sicker population. It was a higher risk population and the company lost money on that," said Kirchen.
The big question is -- what does all of this mean for Assurant Health's Milwaukee employees? FOX6 News was told it is premature to speculate on an outcome. But if the company is sold, Kirchen says their status will depend on who the buyer is.
"If it's another insurance company, they might want to keep all or part of the operation in Milwaukee. If it's just an investor group that buys it, they might have their own ideas. They might want to cut costs and cut jobs here," said Kirchen.
Assurant Health's parent company says it a buyer cannot be found, the company plans to get out of the health insurance market in 2016.