JULY 06, 2022 07:29 AM (EDT)
Best’s Special Report: Second Year of COVID-19 Drives Health Insurers’ Earnings Down, But Impact Differs by Segment
|Antonietta Iachetta |
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FOR IMMEDIATE RELEASE
OLDWICK - JULY 06, 2022 07:29 AM (EDT)
Despite positive results for the U.S. health insurance industry in 2021, the total underwriting gain of $23.9 billion represented a decline of 65% from the previous year as the industry saw a more-normal level of activity, according to a new AM Best report.
Growing COVID-19-related costs also dampened industry results. The Best’s Special Report, “Second Year of COVID Drives Health Insurers’ Earnings Down, But Impact Differs by Segment,” notes that COVID-related expenses—including treatment, testing, and vaccinations—led to claims costs that significantly exceeded projections across the industry. Because the mandate for insurers to cover COVID-19 testing, carriers had limited flexibility to direct members to testing locations with lower costs. Non-COVID utilization, which dropped sharply in 2020 for elective procedures and office visits, also bounced back from the lows of 2020, although remained below historical levels.
Other highlights in the report include:
To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=321516 .
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.