Healthcare Finance News October 13, 2020
Affordable Care Act medical loss ratio rebates in 2021 will likely be exceptionally large across commercial markets.Setting premiums for 2021 is a challenge for insurers. (Pixabay image by Claudio_Scott.)
A Kaiser Family Foundation study confirms other reports that the pandemic has added to health insurer profits and margins, but that the impacts of pent-up consumer demand for delayed care and of coverage for a potential vaccination create costs that are hard to project.
The Kaiser Family Foundation found that, as of the end of June, average margins increased and medical loss ratios dropped compared to 2019 across the fully-insured group and Medicare Advantage markets. Gross margins – the amounts by which premium income exceeds claim costs – among group market...
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