Two subsidiaries of American National Insurance Co. will stop selling individual medical expense health insurance plans due to the minimum medical loss ratio requirements contained in the new U.S. health reform law, according to a company official. American National Life Insurance Company of Texas and Standard Life and Accident Insurance Co. will discontinue selling these plans, starting June 30, American National Insurance said. The individual health plans are mostly high-deductible, major medical products that are a small part of the corporation's overall business, according to the company official.

The 80 percent minimum medical loss ratio requirement “causes us to be uncomfortable” about the company's ability to make money on these plans in the future, Jim Pozzi, senior executive vice president and chief administrative officer of American National told BestWire. Under the new law, small-group and individual plans must spend at least 80 percent of premiums on medical costs and large-group plans, 85 percent.

April 28, 2010