Best’s Special Report: Earnings of U.S. Publicly Traded Health Insurers Declines Utilization Approaches Normalcy – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Life Insurance
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Content
    • Webinars
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
Sign in or register to be an INNsider.
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
  • Insider
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
April 14, 2022 Newswires No comments
Share
Share
Tweet
Email

Best’s Special Report: Earnings of U.S. Publicly Traded Health Insurers Declines Utilization Approaches Normalcy

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
Net income at publicly traded U.S. health insurance companies dropped by 6.6% to $36.5 billion in 2021 as an increase in utilization, compounded by higher COVID-19-related costs, negatively impacted earnings, according to a new AM Best report.

The Best’s Special Report, titled, “Earnings of U.S. Publicly Traded Health Insurers Decline as Utilization Approaches Normalcy,” states that after a year of record earnings in 2020, owing to severely suppressed utilization, the publicly traded health insurers experienced near-normal conditions in 2021, as health care usage resurged despite the ongoing COVID-19 pandemic. Insurers were hit with the resumption of elective and routine procedures that were deferred in 2020 and additional medical costs, as COVID-19 variants led to a surge in cases in the second half of the year. However, even with the drop in net income, along with a decline in operating income of 4.9%, or approximately $2.4 billion, overall earnings in 2021 were still favorable and drove 5.9% growth in shareholders’ equity to $251.9 billion.

Other highlights in the report include:

  • Despite the uptick in utilization, total industry revenue grew by 11.5% from year-end 2020, as a result of 11.6% growth in premium revenue, 13.4% growth in fees and commissions and 18.8% growth in net investment income. The accelerated revenue growth has been achieved primarily through mergers and acquisitions, as carriers remain focused on vertical integration.
  • Medicare Advantage (MA) enrollment surged in 2021, up 15.2% year over year. AM Best expects enrollment for MA to continue to grow given the aging U.S. population and as a growing percentage of Medicare-eligible individuals enroll in MA products rather than traditional Medicare.
  • Legislation that prohibited states from dis-enrolling members from Medicaid coverage, combined with general increased enrollment, supported 8.8% growth in 2021. As states have up to 12 months to perform redetermination once the Public Health Emergency ends, AM Best anticipates elevated enrollment into 2023.
  • Commercial enrollment grew by just 2.6% in 2021, with many insurance companies seeing low or negative growth. Premiums were pressured as well, due to factors that include the ongoing group transition to administrative services only (ASO) or self-funded structures.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=319111.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

src="https://cts.businesswire.com/ct/CT?id=bwnewssty=20220414005532r1sid=acqr8distro=nxlang=en" style="width:0;height:0" />

View source version on businesswire.com: https://www.businesswire.com/news/home/20220414005532/en/

Helen Andersen
Industry Analyst

+1 908 439 2200, ext. 5722

[email protected]

Sally Rosen
Senior Director

+1 908 439 2200, ext. 5280

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Jim Peavy
Director, Communications

+1 908 439 2200, ext. 5644

[email protected]

Source: AM Best

Older

Just How High Will Interest Rates Go?

Newer

Mitigating The Inflation ‘Tax’ On Your Client’s Business And Investment Portfolio

Advisor News

  • Teach your clients effective strategies for today’s retirement
  • Consumers are pulling back on spending. They're also tapping savings and taking on debt.
  • Banks announce dividend plansTruist, Wells Fargo, Bank of America announce dividend hike plans
  • Jerry Shenk: Social Security demagoguery
  • Rick Kahler: My state flunked financial literacy. How about yours?
More Advisor News

Annuity News

  • Winning $300 million Powerball ticket purchased in Middlebury
  • Sammons names Kevin Mechtley to newly created product innovation role
  • Athene completes pension group annuity deal with Lockheed Martin
  • Integrity expands annuity, life insurance distribution with Annuity Agents Alliance
  • Nationwide increases roll-up rate, payout percentage on L.inc+ suite
Sponsor
More Annuity News

Health/Employee Benefits News

  • Aetna drops prior authorization for most cataract surgeries
  • Despite recession fears, employers look to enhance benefits in 2023
  • How will Roe v. Wade reversal impact employee health plans?
  • Jury still out on new insurance plan for Idaho schools
  • Citadel reaches $7.85M settlement over switching patients to boost Medicare payments
More Health/Employee Benefits News

Life Insurance

  • Wisconsin seeks policyholders of insolvent Time Insurance Co. products
  • 4 things to know about the return of premium life insurance
  • Murdaugh, Curtis Smith hit with new SC grand jury indictments
  • Foresters Financial boosts UL crediting rate to 4.75%
  • Protective Life releases 2021 sustainability report
More Life Insurance

- Presented By -

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

FEATURED OFFERS

It’s time for John Hancock Insurance • See how our cutting-edge solutions can help you grow your life insurance business. Get to know us.
Grow your life insurance business with John Hancock • It’s time to see how our cutting-edge solutions can help you and your clients get to know us.

Press ReleasesAll press releases

  • iPipeline® Provides Advisors Excel with Unified Path Toward Accessing Core Data Analytics in Financial Services
  • iPipeline® Adds Speed of Underwriting to Quote Engine with Ethos to Deliver Insurance to Agents in Minutes
  • National Life Will Host Annual Investor Call
  • RFP #T01622
  • OneAmerica Commits $1 Million Toward Financial Literacy
Add your Press Release >

Topics

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Content
  • Webinars
  • Monthly Focus

Top Sections

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2022 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your INNsider Account

Not registered? Become an INNsider.