The commercial group health insurance sector in the U.S. is relatively stable, according to S&P Global Ratings, with specialty drug costs and cyberattacks emerging as new threats. Insurance analysts who attended the latest insurance conference in New York have a positive outlook on the overall health insurance market in the U.S.
During discussions with insurers about the commercial group sector, one common topic is the high costs of covering new GLP-1 drugs for obesity treatment. Insurers are also noting an increase in the use of behavioral health services. While Medicare plan issuers are experiencing a spike in healthcare utilization, reports of higher utilization in the commercial group sector are more prevalent in some regions than others.
In recent years, cyber risks have become a more apparent concern for insurers after UnitedHealth’s Charge Healthcare health data services subsidiary was hacked, disrupting health care delivery and claim processing operations. S&P continues to monitor cyber risks and addresses them in relation to other factors that analysts consider during their assessments of the insurance market.
S&P recently released its U.S. health insurance market view report for 2024, which did not list ransomware attacks or other cyberattacks as top risks in the market or in the commercial group sector. However, after UnitedHealth’s Charge Healthcare was hacked, disrupting health care delivery and claim processing operations, cyber risks have become a more apparent concern for insurers
