WRIN - Joe Marinucci- S&P on Mediciad

Joseph Marinucci, Senior Director at S&P Insurance Ratings, joins WRIN.tv to discuss the expansion of Medicaid under the Affordable Care Act (ACA), and the impact on the revenues of health insurers in the segment.

According to Mr. Marinucci, a key provision of the ACA was to improve access to coverage by expanding Medicaid eligibility. To do that it, the ACA raised the income cap and allowed for the inclusion of childless adults. In 2014, health insurers saw an increase in enrollment and ad an increase in revenue.

A recent S&P report revealed that State policymakers were looking to shift Medicaid coverage to managed care organizations and away from fee-for-service plans. Mr. Marinucci says “Health insurers continue to benefit from the ongoing migration of government sponsored lines to the private sector.”

With Medicaid expansion Mr. Marinucci warns insurers about a few key variables, including rate adequacy, coordination of care for a diverse membership base, and the capacity to manage growth from both an operational and financial standpoint.

For more information on S&P’s report visit the S&P website.

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