The report examined the credit metrics of the following companies: Aetna, Anthem, Centene, Cigna, Health Net, Humana, Molina Health Care, UnitedHealth Group and WellCare Health Plans.
The credit rating agency highlighted several factors that contributed to the health insurers’ improvement, including strong revenue growth, which was driven by Medicaid expansion under the Affordable Care Act, and continuing popularity of Medicare Advantage products.
Fitch also provided its projections concerning acquisitions by major health insurers.
“From a ratings perspective, Fitch views the heightened leverage these acquisitions will bring as outweighing their competitive benefits,” said the rating agency in the report.
More articles on payer issues:
10 states with least competitive commercial health insurance markets
How 7 leading health plans performed in Q1: 8 findings
CMS to test value-based insurance model on Medicare Advantage plans
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