Things are looking up for US health insurers, believes Moody’s Investor Services, prompting the rating agency to change its outlook for the industry from negative to stable.
“Key financial metrics for the US health care insurance sector have stabilised, with solid earnings and stable to slightly positive membership growth in the past two years,” said Stephen Zaharuk, a Moody’s senior vice-president.
However, he continues that ongoing political debate and legal challenges still make for an uncertain environment for health insurers, a risk that many larger health insurers have strived to offset through active diversification strategies.
“The larger, more diversified companies are now well positioned to meet the challenges facing the sector,” says Zaharuk.
Another positive for the health insurance industry, adds Zaharuk, is that in 2012 and 2013 there are no major regulations due to be introduced that will directly affect health care insurers.