Fitch: U.S. Health Insurance Rating Outlook Stable
In the report, Fitch discusses key factors underlying the Stable Rating Outlook for Fitch rated U.S. health insurers and the revision in its sector outlook to stable from negative. The report also identifies the conditions under which Fitch could change the outlook to positive or to negative.
Fitch projects 2015 growth in employer plan sponsored membership in line with GDP and EBITDA margins to remain stable in the 7% - 8% range. Fitch expects little change in balance sheet fundamentals and that financial leverage ratios will decline slightly with growth in stockholders' equity.
Fitch believes it is unlikely that the Affordable Care Act (ACA) will undergo major structural changes over the next 12 ? 24 months and that opposition to key aspects of the ACA is likely to decline over time.
Noteworthy ACA-related uncertainties discussed in the report include legal challenges to subsidies provided to consumers utilizing the federal health insurance exchange, the employer mandate's pending implementation, and the potential for further
The full report '2015 Outlook:
Additional information is available at 'www.fitchratings.com'.
--'Insurance Rating Methodology' (
--'Health Insurance and Managed Care (U.S.) Sector Credit Factors' (
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=825428
Insurance Rating Methodology
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=756650
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=766788
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Source: Fitch Ratings
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