(The following statement was released by the rating agency)
Link to Fitch Ratings' Report: Medicare/Medicaid Health Insurers
NEW YORK, August 05 (Fitch) Fitch Ratings has published a
special report that
discusses the impact of market profiles and size/scale,
financial performance characteristics on Medicare/Medicaid
Insurer Financial Strength (IFS) ratings.
Fitch views the potential and probable rating range for
insurers as lower than the rating range for companies that
compete primarily in
the commercial health insurance market. Relative to commercial
Medicare and Medicaid markets reflect more limited pricing
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
employing higher operating leverage and lower RBC ratios than
in the health and managed care insurance space.
Medicare/Medicaid companies have aggressively pursued membership
growth opportunities related to the Affordable Care Act's
Potential credit issues associated with high growth include rate
adverse utilization trends, claim processing delays and
The 'Medicare/Medicaid Health Insurers Dashboard' is available
'www.fitchratings.com' or by clicking on the above link.
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549,
Additional information is available at 'www.fitchratings.com'.
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