Jan 8 2010
As health insurers struggle with pricing resistance from employers and decreases in enrollment in group health employee benefit plans, health insurer growth and profitability continues to be under pressure, according to a new industry forecast by Conning Research & Consulting.
"We project health care costs to increase faster than premiums, which will prevent margins and statutory operating gains from approaching pre-recession levels through 2011," said Terence Martin, analyst at Conning Research & Consulting. "The prospects for health care reform increase the uncertainty facing health insurers as they try to recover from the recession."
The Conning Research report, "Health Insurance Forecast & Analysis 2009-2011" provides a three-year forecast of the health insurance industry and its key lines of business--Managed Care, Individual Accident & Health, and Group Accident & Health.
"Medicare Advantage margins are also decreasing, and other individual accident and health programs, while producing better margins, are relatively small and somewhat volatile," said Stephan Christiansen, director of insurance research at Conning. "Nevertheless, some opportunities may be emerging in individual health and small group health markets as insurers gear up capacity in advance of health care reform. Also, the recession increased Medicaid enrollment, creating opportunities for health insurers operating in the managed Medicaid market."
SOURCE Conning Research and Consulting
Sapio Sciences and Ultima Genomics partner to advance multi-omics research