Provider, PBM Assets Grow to Comprise More of Insurers’ Revenue

  • Jul 07, 2023

    While strong premium revenue was one major reason for insurers’ favorable results in 2022, rising fee-based income from PBM and health care delivery assets has also played a major role in those firms’ rising fortunes. While that fact is largely viewed favorably by industry analysts, it’s also been increasingly criticized by lawmakers and other stakeholders concerned about vertical integration in the health care industry. 

    “From a ratings perspective, it’s good,” remarks Dean Ungar, a vice president and senior analyst at Moody’s Investors Service. “The diversified revenue stream is better than having a concentrated revenue stream. Of course, the caveat is, if you don’t execute well or if you make acquisitions that are not good acquisitions, you could end up with problems.” 

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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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