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."

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.