Allstate Health Insurance, a division of Allstate Corporation, has announced that it will be closing down about 1,000 of its offices in the United States and Canada.
The company announced the decision after its CEO said in an investor presentation that the company was facing tough competition from new insurance offerings from Blue Cross Blue Shield of Minnesota and Molina Health.
Allstate said the closures will save the company up to $6 billion.
In addition, the company said that it would also close its operations in South Dakota, Michigan, Texas, Ohio, Illinois and New York.
The moves come as other insurers have begun pulling out of the country.
In a letter to employees on Wednesday, Allstate said it will no longer offer health insurance to employees who are eligible for the Affordable Care Act’s employer-based health care coverage.
In a statement, Allsiante said that the decision “comes as a result of continued changes in our business environment and other trends.
We expect the business to recover in the coming years, as we focus on our core strengths and continue to improve our business.
We are committed to delivering the best value to our customers and are committed that we will deliver the best quality health care to our members and the community. “