MedCity News April 21, 2020
A report released Tuesday by Moody’s Investors Service predicted that most insurers will remain profitable after the Covid-19 pandemic.
Most U.S. health insurers will remain profitable despite the Covid-19 pandemic, according to research by Moody’s Investors Service. Researchers envisioned three potential scenarios, a “mild” scenario with an assumed infection rate of 2%, a “medium” scenario with 10% infected, and a “severe” scenario with 40% infected.
In the first two scenarios, insurers would still turn a profit. However, an expected recession could put a damper on commercial enrollments and revenues, according to the report released Monday.
In the mild scenario, insurers could actually see a benefit to earnings as a result of the pandemic, with cancelled elective procedures resulting in a...
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