Moody's says deficit committee could help insurers

NEW YORK (AP) — Moody’s Investors Service said Wednesday that the Congressional deficit committee’s recommendations could be good for health insurers while hurting profits for health care providers and drugmakers.

The Congressional “supercommittee” is tasked with identifying at least $1.2 trillion in budget cuts over the next decade. With Medicare and Medicaid comprising a large portion of federal spending, Moody’s said the committee members will try to cut some of those funds out of federal health care programs. The firm said cuts could come from four areas: Medicare cost-sharing for seniors, payments to health care providers, prescription drug costs and Medicaid spending.