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Health Insurers Post Improved Earnings

The health insurance industry posted improved earnings for 2016, with net income for those companies filing on a health annual statement rising by 46% to $13.1 billion, compared with $9 billion in 2015, according to a new Best’s Special Report...
June 20, 2017

The health insurance industry posted improved earnings for 2016, with net income for those companies filing on a health annual statement rising by 46% to $13.1 billion, compared with $9 billion in 2015, according to a new Best’s Special Report.

The report, titled U.S. Health Insurance Industry Earnings Up in 2016, noted net income was supported by a second year of improving underwriting income, which is owed to favorable year-over-year development in the majority of lines of business. The individual segment was still suffering, but had showed some improvement last year, the report said. The underwriting profitability of the Medicare Advantage business segment jumped 279% from 2015, owing to a decline of almost 200 basis points in the segment’s medical loss ratio (MLR), the report said.

The improvement in health insurer earnings comes as efforts are underway in Congress to repeal and replace the Affordable Care Act (ACA).

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