Even with uncertainties surrounding the Patient Protection and Affordable Care Act, Fitch Ratings has upgraded the health insurance sectors' outlook to stable from negative, according to a special report published Fitch.
A number of factors were considered for the outlook revision, including the PPACA and challenges to the health reform law. Although Fitch said it's "unlikely" the PPACA will undergo any "major structural changes" in the next one to two years, the rating agency did consider the law's uncertainties, such as the current challenge to subsidies under the PPACA, for its outlook revision.
Fitch expects U.S. health insurers to generate solid margins and returns on capital next year, with operating profit margins for employer sponsored health plan membership experiencing growth of 7 percent to 8 percent in 2015.
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