U.S. health insurers face mounting cost pressure driven by drug shortages, rising costs for pharmaceuticals and other inputs, and higher usage. However, a leading credit rating agency said they have the ability to respond.
"Insurers will be compelled to incorporate these rising pressures into their cost projections when establishing premium pricing in the coming years, although rates of increase will vary significantly by region due to local market conditions," according to Fitch Ratings. "As consumers begin to face higher premium rate increases, the public discourse around affordability of health care coverage, although ever present, will likely be reinvigorated in the near term."
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Alan Goforth
Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.
