Health insurer margins were stable in 2020, while 2021 remains uncertain, Fitch says


Last year's health insurer operating margins were surprisingly stable despite quarterly volatility caused by COVID-19 testing and treatment, according to Fitch Ratings.

Deferral of elective healthcare services due to the pandemic was the main factor in offsetting margin pressure, Fitch said.

Despite preparations for a surge in member utilization of healthcare services in 2021 and greater knowledge regarding COVID-19 treatment costs, payers remain uncertain as to what the rest of the year will look like. Vaccine effectiveness, virus variants and "pandemic fatigue" are variables that could facilitate quarterly volatility into 2022.

Read the full Fitch Ratings report here.



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