[March 04, 2015]

A.M.BestTV: 'First Monday' Review & Preview: U.S. Health Insurers Adjust to New Industry Norms Post-Reform

In this third of four "First Monday" episodes exploring the U.S. insurance industry, A.M. Best Assistant Vice President Joseph Zazzera and Senior Financial Analyst Bridget Maehr discuss the U.S. health sector. Click on http://www.ambest.com/v.asp?v=fmhealth315 to view the video program. The last 'First Monday' Review & Preview episode will focus on the major trends in the reinsurance industry. "First Monday" is A.M. Best's monthly program featuring commentary by the company's leading analysts.

In this episode, Zazzera and Maehr highlight how health writers navigated the key health reform provisions that began in 2014. "A.M. Best has a stable outlook on the health industry, even with most of the major components of the Patient Protection and Affordable Care Act going into effect in 2014," said Zazzera. "In 2014, there were quite a few issues that health insurers had to contend with, one being the health exchange enrollment as it was quite lower than the Congressional Budget Office expected it to be."

Maehr said that "the health industry's financials were very solid throughout the third quarter of 2014, as the industry has seen top line premium growth. Furthermore, the medical trend has continued to remain moderate, even with the additional utilization from the exchange membership."

However, both said the sector has experienced narrowed margins, and that the lower overall margins likely will be the new normal.

Recent episodes of ^A.M.BestTV include:

• 'First Monday' Review & Preview: U.S. Life/Annuity Industry Navigating Obstacles to Growth: A.M. Best Vice President Stephen Irwin and Assistant Vice President Rosemarie Mirabella highlight key growth opportunities in the life/annuity sector as well as in the U.S. retirement market: http://www.ambest.com/v.asp?v=fmlifeannuity315.
• 'First Monday' Review & Preview: Overarching Issues Threaten Positive Results in U.S. Property/Casualty Sector: A.M. Best Group Vice President Anthony Diodato highlights positives in the P/C sector, including a second straight year of underwriting profitability: http://www.ambest.com/v.asp?v=fmpropertycasualty315.

• Insurers Step Up Their Charitable Giving: A new McKinsey & Company survey shows that charitable giving by the insurance industry has risen by 15% since 2011: http://www.ambest.com/v.asp?v=iicf215.
• National Insurance Crime Bureau Fights With Computers and Investigators: A small army of former police investigators at the National Insurance Crime Bureau help member companies fight fraud by weeding through thousands of suspicious claims every year: http://www.ambest.com/v.asp?v=fraud215.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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