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.”

Insurers benefit from booming economy

The report noted that the overall strong economy is boosting the insurance industry, because increasing numbers of employed Americans result in more members paying into employer-sponsored plans. At the same time, analysts said, medical costs have been contained, so insurers can expect seeing growing income and predictable expenses in the near future.