Fitch Publishes Inaugural Medicare/Medicaid Health Insurers Dashboard

Tue Aug 5, 2014 2:05pm EDT

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(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Medicare/Medicaid Health Insurers Dashboard here NEW YORK, August 05 (Fitch) Fitch Ratings has published a special report that discusses the impact of market profiles and size/scale, capitalization and financial performance characteristics on Medicare/Medicaid health insurers' Insurer Financial Strength (IFS) ratings. Fitch views the potential and probable rating range for Medicare/Medicaid insurers as lower than the rating range for companies that compete primarily in the commercial health insurance market. Relative to commercial health insurance, Medicare and Medicaid markets reflect more limited pricing power, narrower profit margins and greater volatility in revenues. A group of five (Centene Corp.; Molina Healthcare, Inc.; WellCare Health Plans, Inc.; and Health Net, Inc.) Medicare/Medicaid companies followed by Fitch have generated lower profitability metrics than national competitors while also employing higher operating leverage and lower RBC ratios than other subsectors in the health and managed care insurance space. Medicare/Medicaid companies have aggressively pursued membership and revenue growth opportunities related to the Affordable Care Act's Medicaid provisions. Potential credit issues associated with high growth include rate inadequacy, adverse utilization trends, claim processing delays and operational problems. The 'Medicare/Medicaid Health Insurers Dashboard' is available at '' or by clicking on the above link. Contact: Greg Dickerson Director +1-212-908-0220 Fitch Ratings, Inc. 33 Whitehall St. New York, NY 10004 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: Additional information is available at ''. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.