Primerica is giving up on a newly acquired Medicare plan distribution firm after just three years.
The life insurer and financial services distributor said Tuesday that it will pass e-TeleQuote Insurance on to a "third party who has not yet been identified" by Sept. 30.
The Primerica board believes that the senior health distribution market is "increasingly challenging" and that the market "is facing an uncertain regulatory environment," the company said.
Primerica agreed in 2021 to acquire an 80% stake in the Clearwater, Florida-based holding company that owns e-TeleQuote through a deal that had a total maximum value of $575 million.
What it means: Primerica's move raises questions about whether tougher conditions in the Medicare plan market will simply squeeze some players out or whether turmoil will disrupt the upcoming annual enrollment period.
The enrollment period for Medicare Advantage plans and Medicare Part D prescription drug plans for 2025 is set to start Oct. 15, as early general election voting is underway in many states.
The timing means disruption could affect the presidential and congressional elections as well as older clients' ability to pirchase Medicare plan coverage.
