Becker's Healthcare June 24, 2024
Some of the nation’s largest health insurers have signaled significant headwinds in recent months within their Medicaid businesses as costs rise and the effect of redeterminations takes hold, but Fitch analysts expect those headwinds to be short-lived.
“Regardless of the core drivers of the higher utilization rates, we expect the resulting Medicaid margin pressure to be relatively short-lived, as rate setting discussions with states should incorporate the higher levels of acuity,” Fitch analysts wrote in a June brief shared with Becker’s. “For most companies, diversification, particularly in commercial group and individual exchange market, will also continue to be beneficial in helping to offset the temporary margin pressure in Medicaid. Additionally, higher interest rates continue to more heavily benefit the investment...
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