The health insurance landscape is poised to see less industry volatility, making for a stable 2022, according to a Dec. 9 report from Fitch Ratings.
The report says pandemic-related expenses are expected to evenly offset cost savings tied to deferral of care before an eventual return to delayed care will cause mild disruption.
"As the U.S. healthcare system adapts to COVID-19's likely transition to an endemic disease, the associated disruption in the interim is expected to drive continued modest volatility in operating results of established health insurers," said Brad Ellis, senior director of Fitch Ratings' insurance ratings group. "However, this volatility is unlikely to rise to a level sufficient to change the sector's broader credit profile."
Compared to 2020, Fitch Ratings improved its outlook for four insurers, giving the industry a more positive outlook across the board in comparison to 2019 and 2020.