Healthcare Finance News February 8, 2024
Insurers generally have sufficient ratings headroom to withstand higher MA utilization rates, analysts found.
Rising Medicare Advantage utilization among older U.S. adults, as well as rate cuts for 2025, are likely to be credit-neutral to the healthcare industry, according to analysts at Fitch Ratings.
Some of the disruption in MA reflects renewed efforts by the Centers for Medicare and Medicaid Services to rein in the rate of growth in expenditures for the Medicare program, while attempting to maintain stable coverage for U.S. seniors, analysts said. The recent tightening within the program follows a moderate relaxation of funding constraints during the pandemic to deal with COVID-19.
Health insurers have been critical of weaker payment rates, as well as changes in the...
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