A.M. BestTV: U.S. Health Insurers Grow Via Government-Sponsored Programs, Say A.M. Best Analysts

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OLDWICK, N.J.--(BUSINESS WIRE)-- In this ^A.M.BestTV episode, Doniella Pliss, associate director, and Jeffrey Lane, senior financial analyst, A.M. Best, report that U.S. health insurers are experiencing mixed results with Medicaid and other government-related lines of business. Click on http://www.ambest.com/v.asp?v=govhealthprograms918 to view the entire program.

Lane spotlighted the Medicaid sector, which has offered the most premium growth for health insurers.

“Net premiums written grew to $224 billion a year in 2017, from $43 billion in 2007,” said Lane. “Growth was a result of Medicaid expansion under the Affordable Care Act and states turning to manage care to run traditional Medicaid programs. Medicaid continues to grow, but at a slower pace. … However, there are still opportunities for growth as the states expand through additional programs.”

Pliss spoke about the challenges that insurers face in government-sponsored segments.

“One of the common challenges is the pressure on liquidity due to a potential delay in the timing of the payments from the government, especially as it relates to Medicaid payments. Carriers struggle in those states where there have been budgetary issues over the last couple of years. Other challenges include potential unexpected changes in regulation or legislation, as well as very strict compliance requirements imposed by the government programs on the carriers that participate,” she said.

To access a copy of this market segment report, titled, “Government-Related Health Insurance Business Continues to Grow Despite Risks,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=276821.

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A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.