Market Overview

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

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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.

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