Fitch Ratings revised its stable outlook for the U.S. health insurance industry to negative due to adverse effects from the COVID-19 outbreak.
Fitch analysts predict U.S. health insurers will see their profitability and debt service metrics weaken as claim costs associated with COVID-19 testing and treatments, including hospitalizations, grow.
Fitch expects smaller insurers to be exposed to larger levels of stress related to COVID-19. The ratings agency said it will revisit its outlook once U.S. infection rates from COVID-19 become more predictable.
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