Progressive Insurance says it will be ‘allowing’ the next generation of Americans to get coverage for catastrophic health care coverage
Progressive Insurance announced it will allow the next-generation of Americans under its Progressive Life Insurance to use its life insurance policies, including catastrophic coverage, for the next three to four years, even as the company struggles with rising health care costs.
The decision comes after years of negotiations, as the insurer has faced scrutiny from insurers for not offering enough coverage for the millions of Americans who need it.
Progressive has previously said it will offer “full coverage” for the same time period as the next two generations, and that it will provide “reasonable” coverage for anyone younger than 65.
Insurers that offer catastrophic coverage have struggled in recent years to find enough people who want to buy policies.
Insurers say they must continue to make up for the loss of business from customers who leave, and as more Americans have chronic health conditions, that demand has increased.
Insurance experts have said that while they cannot be certain what impact the decision to allow the new policyholders will have on the marketplace, it would appear that it would be very large.
Progressive’s decision to open up the policy pool for the first time in more than a decade, the company said in a statement on Wednesday, reflects the changes that are underway in the industry as a result of the Affordable Care Act.
“As more Americans reach for coverage, our policy pool will expand, creating a much stronger incentive for us to make the necessary adjustments to protect our policies for the foreseeable future,” Progressive Insurance CEO Michael Oren said in the statement.
Progressive, which is owned by the pension funds of retired military officers, has been under pressure from insurers to extend coverage to the next generations.
The company said that as of this spring, the insurer’s policy pool had more than 2 million policies for a total of 2.2 million customers.
“It is imperative that all policies remain affordable for Americans who are already underinsured and unable to buy insurance through the marketplace,” Oren added.
In a separate announcement, the New York State Department of Health said that Progressive Insurance plans to extend its coverage to more than 1.8 million people, with the goal of increasing coverage to 10 million by the end of 2021.
Progressive also announced plans to expand coverage for people 65 and older by 2026.
Progressive said that the decision “is a reflection of our commitment to delivering better health coverage to our customers.”
Progressive also announced that it was opening up its policy pool to younger customers, who are also younger than 75.
Progressive announced last year that it is expanding coverage for under-65s for three to five years, starting with three years of coverage.
Progressive plans to provide coverage to older adults by 2027, but did not provide details on how it plans to do so.
Progressive is expected to make a profit of $2.2 billion on its sale of its business.