A.M. BestTV: Exchange Population Dynamics Cramp U.S. Health Insurers’ Earnings, Says A.M. Best Analyst

OLDWICK, N.J.--()--This A.M.BestTV episode highlights A.M. Best Vice President Sally Rosen, who talks about how exchange enrollment continues to be older and riskier, which has had a larger negative financial impact than originally anticipated on U.S. health carriers. However, she said, they remain diligent in finding new ways to better compete. Click on http://www.ambest.com/v.asp?v=health316 to view the entire program.

“Those providing coverage to the exchanges, many of them have found that the exchange population is not as large as was expected. They’re higher-utilized risks. They’re higher-risk individuals,” said Rosen. “However, the Medicaid carriers have found, while Medicaid is a lower-margin business, they have to qualify financially. They have picked up a lot more enrollment largely because of the Medicaid expansion that occurred in many states.”

Additionally, Rosen spoke about the advantages that have come to this new health environment. “Scale helps you to lower administrative expenses overall. … The more insured you have, hopefully, can play into getting a better-negotiated rate.”

To access a copy of the Review/Preview special report for the health sector, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=246597.

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A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

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Contacts

A.M. Best Company
Lee McDonald, +1 908 439 2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com

Contacts

A.M. Best Company
Lee McDonald, +1 908 439 2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com