A.M. Best improves outlook for health insurance industry to ‘stable’

Healthcare DIVE January 4, 2018
Les Masterson

Dive Brief:

• A.M. Best has revised its outlook for the health insurance industry from “negative” to “stable” for 2018.
• The rating agency said the reason for the change is that health insurers have adapted to the pressures of the Affordable Care Act (ACA) and improved earnings and risk-adjusted capitalization levels, according to its new report, Market Segment Outlook: U.S. Health.
• A.M. Best said multiple payer product lines remain profitable, including the employer-based market, Medicaid and Medicare Advantage (MA).

Dive Insight:

The stable outlook means market trends should have a “neutral influence on companies operating in that market segment over the next 12 months,” according to the report. Though A.M. Best said there are negative factors affecting payers, insurance...

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