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U.S. Health Insurers Profitable, But Growth Challenged

In this A.M. Best TV episode, A.M. Best Senior Director Sally Rosen and Associate Director Doniella Pliss review a new report examining the state of the U.S. health insurance market, including how insurers are finding new ways to deliver services through vertical integration.

U.S. health insurers overall have been able to adapt to the pressures created by the Patient Protection and Affordable Care Act (ACA), and the result is a more stable marketplace.

“The health insurance industry on the whole has remained profitable since the implementation of the ACA in 2014,” said Rosen. “This is mainly due to lower medical cost trends, no big blockbuster prescription drugs having come to market in the past year or so, no health insurer fees in 2017, improvements in the ACA exchange business, several years of rate increases and stability in the membership. Thus, A.M. Best believes the industry will remain profitable.”

Pliss highlighted the impact of President Trump’s signing of an order that includes the expansion of short-term medical insurance policies and association health plans.

“For the last couple of years, the experience in these plans has been very positive, with medical loss ratios being low. However, that can lower the risk pool for individual exchanges; although, it is not expected that the migration to these plans will be that large,” said Pliss.

Click on to view the entire program.

To access a copy of this market segment report, titled, “U.S. Health: 2018 Review & Preview,” please visit

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