As medical cost trends continue to rise, the health sector has enacted cost-containment strategies that have blunted the impact of cost increases. (Photo: Getty)

Moody’s Investor Service has issued a relatively glowing report on the U.S. health insurance market, predicting stability and earnings growth for insurers in 2019. Despite continued public anxiety over health insurance reforms, Moody’s analysts noted that currently, the Affordable Care Act (ACA) is working well for insurers in the US.

“Our stable outlook for US health insurers is based on our expectations of solid earnings growth, reflecting disciplined medical management, stable medical cost trends, and modest membership growth,” the report said. “The industry has adjusted to the ACA, and ACA plans have been profitable overall in 2018, which we expect to continue.”

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