Principal Insurance to Exit Medical Business. Flex and HRAs will be affected

By Ric Joyner, MBA, CEBS, CFCI, GBA

I recommend that you look for a new TPA that is not integrated with the carrier. Why? Here is another great reason to keep your clients protected when carriers with bundled products change course or service isn’t great. Principal is exiting the medical business and United HealthCare is taking over. With the amount of business eflex has taken from UHC for FSA, HSAs and HRAs over the years (Famous Footwear) I recommend if you have any of this ancillary business with Principal, and would like to get an alternative quote for your clients for an unbundled product contact, Isaiah.Joyner@eflexgroup.com and he can provide you with quotes and create a smooth transition. Thanks again for keeping eflex in mind.

 

The Principal Financial Group
 
The Principal to Exit Medical Insurance Business

Conference call scheduled

When: Friday, Oct. 1, 2010, 1:00-2:00 p.m. CT
Call in number: 1-866-399-0197
Conference ID: 14719478

After careful consideration, The Principal® has decided to exit the medical insurance business (insured and self-insured) and has entered into an agreement with UnitedHealthcare to renew medical insurance coverage for customers of The Principal as the business transitions within the next 36 months.

Impacted products: Not impacted:
  • Insured medical
  • Self-funded medical
  • Flexible Spending Accounts
  • Insured life/dental/disability/vision (whether stand alone, combined with insured medical, or combined with self-funded medical)
  • Self-funded dental/disability/vision not bundled with medical
  • Wellness programs
  • Health Savings Accounts

As we enter this period of change, we want you to know what hasn’t changed. First, you remain an important partner. Our commitment to offering group term life, dental, disability, vision, Health Savings Accounts and wellness programs, as well as retirement and investment services, has not changed.

We sincerely appreciate your trust and the business you brought us over the years. We are dedicated to working closely with you to ensure a smooth transition for you and your clients.

Leaders from The Principal are hosting a conference call today at the number listed above to provide you additional information and answer any questions you have about the transition.

If you have any questions, please e-mail The Principal.

 
Copyright © 2010 Principal Financial Services, Inc., 711 High Street, Des Moines, Iowa 50392
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Securities offered through Princor Financial Services Corporation, member SIPC”The Principal,” “Principal Financial Group,” the Edge Design and “We’ll Give You An Edge” are registered service marks and the illustrated character is a service mark of Principal Financial Services, Inc.
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