|[August 05, 2014]
Fitch Publishes Inaugural Medicare/Medicaid Health Insurers Dashboard
NEW YORK --(Business Wire)--
Link to Fitch Ratings' Report: Medicare/Medicaid Health Insurers
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
comptitors while also employing higher operating leverage and lower RBC
ratios than other subsectors in the health and managed care insurance
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 'www.fitchratings.com'
or by clicking on the above link.
Additional information is available at 'www.fitchratings.com'.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
AVAILABLE ON (News - Alert) 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
[ InfoTech Spotlight's Homepage ]