You are here:HomeNews CenterInsurance News2017 S&P: ACA Results Improve As Repeal Looms

S&P: ACA Results Improve As Repeal Looms

Just as Republicans appear to be poised to repeal the Affordable Care Act (ACA), S&P Global Ratings is reporting that 2016 will be the first year in which the individual market under the ACA begins to show improvements in profitability for insurers...
January 4, 2017

Just as Republicans appear to be poised to repeal the Affordable Care Act (ACA), S&P Global Ratings is reporting that 2016 will be the first year in which the individual market under the ACA begins to show improvements in profitability for insurers. S&P made the observation in an analysis article it published: [The ACA Individual Market: 2016 Will Be Better Than 2015, But  Achieving Target Profitability Will Take Longer].

Although most insurers likely will report an underwriting loss for 2016, the losses will be smaller on average than they were in 2015. “This means the changes made to network design and premium pricing are gaining traction, though more still needs to be done,” says S&P Global Ratings credit analyst Deep Banerjee.

S&P forecasts continued improvement in 2017, with more insurers reporting close to break-even or better, but Banerjee notes that “insurers didn’t price for a repeal in 2017.”