Fitch: Industry business landscape favorable for large payers

The health insurance market is in a strong, favorable position for the nation's largest payers, according to a Fitch Ratings report shared with Becker's. 

Over the past two decades, the insurance landscape has become a more stable, reliable industry, according to the report released Jan. 25. This stems largely from increasing claims insights, allowing payers to more accurately price premiums. 

Geographic diversity is also providing payers with risk resilience. The report said payers with a national reach are slated to see a stable market, with disturbances like regional disease outbreaks and morbidity having less of an impact. 

For payers with a geographically-diverse footprint, the report said payers with strong metropolitan presences should be positioned to benefit from favorable negotiation leverage as they look to expand their provider networks. 

The report ranked UnitedHealth as the payer with the strongest financial performance and earnings, followed by Aetna, Cigna, Anthem and Humana.

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