Health Payer Intelligence February 27, 2020
Regulatory changes motivated major shifts in the health payer industry in 2019 and most segments are expected to remain profitable for 2020, despite tighter margins.
The Best’s Market Segment Report, a global insurance credit rating agency, publisher, and data analytics provider, has projected tighter margins but an overall stable outlook for 2020 for most health payer segments, according to an AM Best report obtained via email.
Overall, national health expenditure growth has slowed, dwindling to under five percent, and the percentage of GDP continued to hover around 18 percent. That being said, both private insurance and Medicare expenditures exceeded that growth rate individually.
The report particularly demonstrated how significant regulatory shifts have motivated tighter margins and maintained profitability.
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