United American Insurance, a subsidiary of Torchmark, lights the path for Medicare customers. The firm sells supplemental Medicare health insurance policies and Part D drug coverage to seniors across the US. United American also provides limited-benefit individual and group plans for critical medical care. The company began operations in 1947 providing life, health, and accident insurance to individual customers in Texas. Since then its operations have spread to 49 states, the District of Columbia, and Canada. In New York State, the company operates through a subsidiary, First United American Life Insurance Company. United American sells its products through both exclusive branch offices and independent agents.
The company began focusing on individual health coverage following the creation of Medicare in 1966. In addition to its core Medicare Supplement health plan (which covers medical expenses not fully covered by Medicare policies) and Medicare Part D prescription drug coverage offerings, the company also offers limited-benefit health insurance policies to customers under the age of 65, including cancer and accident coverage.
United American previously offered limited-benefit health plans for general hospital and surgical care; however, intensifying competitive conditions and declining sales levels in the health insurance segment prompted Torchmark to discontinue those offering in 2010. As a result, Medicare Supplemental policies accounted for more than half of United American's revenues in 2010 for the first time in 10 years.
In addition, Torchmark moved to streamline its distribution operations by combining its United American and Liberty National exclusive agency branch offices in 2010. It also contracted with fewer independent agents due to the decreased product offering that year.
Other Torchmark subsidiaries, including Liberty National Life and American Income Life, offer life, accidental death, and long-term care policies. Torchmark divested its United Investors Life annuities division in 2010. – less