The rating affirmations reflect the financial and operational support provided to the Health Net companies by its parent,
During 2016, the Health Net companies’ operating results were challenged by the health insurer’s fee and write-down of the risk corridor receivable related to the Patient Protection and Affordable Care Act. In addition, premium deficiency reserves were established due to claim experience. However, the organization has taken corrective actions in product design and pricing to improve future results. Furthermore, the operating losses placed additional pressure on risk-adjusted capitalization, resulting in a number of capital infusions from
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
Senior Financial Analyst
Manager, Public Relations
Director, Public Relations