The commercial group health insurance segment of the U.S. insurance market is considered relatively stable by S&P Global Ratings, with a focus on specialty drug costs and cyberattacks emerging as a new threat. Insurance analysts attending the latest insurance conference in New York have a positive view of the overall health insurance market in the U.S.
During discussions with insurers about the commercial group sector, the high costs of covering new GLP-1 drugs for obesity treatment are a common topic. Insurers are also noting an increase in the use of behavioral health services. While Medicare plan issuers are experiencing a spike in health care utilization, reports of higher utilization in the commercial group sector are more prevalent in some regions than others.
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 health data services subsidiary was hacked, disrupting health care delivery and claim processing operations, cyber risks have become a more apparent concern for insurers.
S&P continues to monitor cyber risks and addresses them in relation to other factors, such as earnings, that the analysts consider during their assessments of the insurance market.