BestWeek: Consolidation, Medicare Drug Plan Shaped Health Market in 2005.OLDWICK, N.J. -- The new stream of revenue for health insurers from Medicare prescription-drug plans carries a risk, as slender profit margins could hurt the capitalization of some players in the market, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. a new special report from A.M. Best Co. in the May 1 BestWeek.
The beginning phases of implementing the new Medicare prescription-drug product, Medicare Part D, were among several important events that occurred in the health insurance industry in 2005. These events also included two large acquisitions of publicly traded health insurers.
While Medicare Part D was not effective until Jan. 1, 2006, the players were established in 2005, and insureds began enrolling in mid-November. Health insurers participating in Medicare Advantage, especially Part D, had incurred higher expenses due to the ramp-up of marketing and administration in the second half of 2005, and expenses are expected to remain high for the first quarter of 2006.
Also in the May 1 BestWeek:
--Why market turbulence radiating ra·di·ate
v. ra·di·at·ed, ra·di·at·ing, ra·di·ates
1. To send out rays or waves.
2. To issue or emerge in rays or waves: Heat radiated from the stove. from the hurricane-battered U.S. Southeast is driving insurance buyers to seek protection in alternatives such as catastrophe bonds catastrophe bond
A debt security with a payoff tied to the relative severity of a natural disaster such as a hurricane or earthquake. Bondholders are paid with insurance premiums but may have to accept reduced principal repayment in the event the specified ; and
--Extensive and exclusive coverage of the Risk and Insurance Management Society's annual conference, held in Honolulu.
Also featured is Best's Insurance Composite Index Composite Index
A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". , which finished the week of April 27, 2006, at 1,119.66, up 18.42% compared with a year ago. The composite index reflects the performance of 134 insurance stocks. The week's top performers were Vesta Insurance Group Inc.; Fidelity National Financial Inc.; EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. Insurance Group Inc.; First American First American may refer to:
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