Fierce Healthcare April 20, 2020
Health insurers are likely to remain profitable despite the uncertainty around COVID-19, according to a new analysis.
Analysts at Moody’s Investors Service maintained the stable outlook for the industry, though it’s unclear at present just how much the virus pandemic could impact health plans financially.
The analysts said that even in the most severe scenario modeled, where 40% of Americans are infected by the virus, companies would likely break even on EBITDA and have notable capital and liquidity.
“Although our remote severe scenario would put pressure on earnings and capital, the industry has the wherewithal to manage, which ultimately supports our stable outlook,” the analysts said.
To weigh insurers’ financial performance, Moody’s used three models:
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