A S&P Global Report analysis forecasts health insurers will start seeing financial losses reverse on their ACA individual marketplace plans in 2016 after "hitting bottom" in 2015, CNBC reports.
While the majority of payers reported losses for 2016, S&P projects the losses will be smaller than those incurred in 2015. Analysts said the improved results reflect decreases in medical loss ratios by Blue Cross and Blue Shield during 2016, as well as changes to the design of provider networks accepting ACA individual plans.
The trend may continue in 2017, with more payers "close to breakeven or better" on their ACA individual marketplace plans, according to the report.
S&P said Republican leaders' vow to repeal and replace the ACA will mean the individual market will see structural changes, stating "what will happen in 2018 and beyond is somewhat uncertain at this time."