Press Release - SEPTEMBER 05, 2018

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


CONTACTS:
 Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 05, 2018
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 .

Recent episodes of A.M.BestTV include:


  • U.S. Health Insurers Become More Aggressive Investors, Say A.M. Best Analysts: Jennifer Asamoah, financial analyst, and Jason Hopper, associate director, industry research and analytics, both of A.M. Best, said health insurers’ investments have included more non-traditional assets and higher-risk bonds: http://www.ambest.com/v.asp?v=healthinvestments818 .

  • Hawaii Dodged Hurricane, but Still Exposed to Flooding, Say A.M. Best Analysts: Steven DeLosa, associate analyst, and Bobby Skrabal, financial analyst, both of A.M. Best, said the insurance impact following Hurricane Lane mostly will be property and flooding claims in Hawaii, although relatively few Hawaii homeowners have flood insurance from the National Flood Insurance Program: http://www.ambest.com/v.asp?v=hawaii818 .

  • Volatility, Fees Cool Insurers’ Ardor for Hedge Funds, Says A.M. Best Associate Director: Jason Hopper, associate director, industry research and analytics, A.M. Best, said insurers have become more selective in their use of hedge funds: http://www.ambest.com/v.asp?v=hedgefunds918.

  • Qard Hasan Loan System Creates Conflicts for Takaful Insurers, Says A.M. Best Associate Director: Salman Siddiqui, associate director, analytics, A.M. Best, said takaful-oriented insurers often rely on an interest-free loan system, known as Qard Hasan, to cover policyholder deficits, and that over-reliance on the system can create longer-term issues: http://www.ambest.com/v.asp?v=qardhasan818 .

A.M.BestTV covers exclusive A.M. Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View A.M.BestTV episodes at http://www.ambest.tv .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.