business
Guardian leaves medical benefits business
NEWS IN BRIEF — Posted Feb. 14, 2011
Citing lack of scale to be effective in the group medical insurance business, Guardian Life Insurance is leaving the industry.
Spokesman Richard Jones said the company had 44,340 covered workers with 1,700 employer customers when it decided to stop selling group medical coverage. He said the company will continue to offer dental and disability insurance.
"The medical marketplace has really become dominated by the large national carriers," Jones said. "It's really because it's not anywhere we feel we can compete effectively." He said Guardian had been using a rental network.
United Healthcare will have first crack at offering medical insurance to Guardian's remaining customers when they look for coverage in 2012, Guardian said.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/02/14/bibf0214.htm.
