Becker's Healthcare December 31, 2025
Fitch Ratings has issued a “deteriorating” outlook for the U.S. health insurance industry in 2026, citing persistent medical cost pressures, regulatory uncertainty, and fallout from expiring ACA enhanced subsidies.
The Dec. 30 report shared with Becker’s projects medical loss ratios for the seven largest publicly traded insurers will reach an average of 87.9% by the end of 2025, with continued increases expected next year.
Five notes:
- Commercial group medical costs are expected to climb nearly 9% in 2026, the highest rate in over a decade, driven by inpatient cost inflation, provider consolidation, and specialty drug spending, particularly GLP-1s.
- The expiration of enhanced ACA premium tax credits on Jan. 1 could trigger adverse member selection, with...
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Topics: Insurance