Financial.A challenging investment environment made 2008 a difficult year for the health care industry. Overall, the publicly traded managed care companies' net income fell by 36.5%, year over year, due to a 22.5% drop in underwriting income Underwriting income For an insurance company, the difference between the premiums earned and the costs of settling claims. and a 59.2% decline in investment income. After a busy year of mergers and acquisitions in 2007, activity all but stalled in 2008. Medical Loss Ratio The average medical loss ratio was 82.9 in 2008, up from the 81.6 recorded in 2007. Medical cost trends see U.S. health insurers experiencing increases in higher dollar claims and claims severity. (Percentage) [ILLUSTRATION OMITTED] [GRAPHIC OMITTED] Total Revenue [GRAPHIC OMITTED] Enrollment [GRAPHIC OMITTED] |
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