That positive financial impact is expected to continue in 2015 as the implementation of the health insurance exchanges and Medicaid expansion continues. However, in the long-term, insurers with poor pricing power and scale and providers that don’t adequately adapt to the changing healthcare landscape will likely be hurt by the PPACA, according to S&P.
S&P maintains a negative outlook for the hospital sectors because of reductions in disproportionate share payments and other reimbursement pressures. The insurance industry has a stable outlook, however, based on S&P’s view that most health insurers have enough fiscal strength to weather a moderate level of temporary earnings strain.
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