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Industry Under Pressure: Moody’s Shifts Outlook to Negative for Health Insurers

  • Feb 07
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    Feb 07, 2025

    While 2024 was an especially challenging year for health insurers, a major credit-rating firm is now predicting that 2025 and beyond may not be that much better.  

    Specifically, Moody’s Ratings said in a newly issued report that it is changing its outlook on the health insurance sector from stable to negative.  

    The company noted that although major insurers’ earnings growth is likely to remain in the low single digits, “insurers will continue to grapple with medical costs in excess of reimbursement rates” for both Medicare Advantage and Medicaid, “while commercial coverage also faces continued high medical costs.” Moody’s cited projections in PwC’s 2025 Medical Cost Trend Report, which estimated that commercial group medical cost trend in 2025 will be at its highest level in 13 years.  

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    • Leslie Small

    Leslie has been working in journalism since 2009 and reporting on the health care industry since 2014. She has covered the many ups and downs of the Affordable Care Act exchanges, the failed health insurer mega-mergers, and hundreds of other storylines spanning subjects such as Medicaid managed care, Medicare Advantage, employer-sponsored insurance, and prescription drug coverage. As the managing editor of Health Plan Weekly and Radar on Drug Benefits, she writes and edits for both publications while overseeing a small team of reporters who also focus on the managed care sector. Before joining AIS Health, she was a senior editor for the e-newsletter Fierce Health Payer, and she started her career as a copy editor at multiple local newspapers. She graduated with a dual degree in journalism and political science from Penn State University.

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