AM Best Panel to Discuss Medicare Advantage Challenges and Outlook in 2026

AM Best is set to host a panel briefing on January 15, 2026, focusing on the Medicare Advantage segment within the U.S. health insurance market. The session will address the negative outlook AM Best has assigned to the U.S. health insurance industry, particularly highlighting challenges in Medicare Advantage and Medicaid Managed Care due to rising utilization trends and increasing medical costs. The event, titled 'AM Best's Briefing – Health: Medicare Advantage Challenges and Opportunities,' aims to explore key factors driving these pressures and potential strategic responses. The panel includes Julia Friedman, a principal and consulting actuary at Milliman, who brings deep expertise in Medicare Advantage plan strategy and financial performance insights. She is expected to discuss how evolving Medicare Advantage dynamics will influence 2026 benefit design and set the stage for 2027 outlooks. Stephen Harris, president of government markets at Health Care Service Corporation (HCSC), will provide perspective on Medicare Advantage from a large Blue plan's national footprint and discuss opportunities seen by HCSC in this sector. Bridget Maehr, director at AM Best, will contribute the rating agency’s views, offering analysis on regulatory and market impacts affecting the segment. The inclusion of these experts reflects the complex environment Medicare Advantage plans face, balancing cost pressures with regulatory compliance and competitive positioning. AM Best’s preparation of this briefing underscores ongoing market scrutiny by credit rating agencies on health insurers that offer Medicare Advantage plans. Increasing medical costs and utilization trends present substantial risks to profitability and credit ratings, crucial for investors and industry stakeholders. The discussion is indicative of heightened attention toward payer/provider strategies to manage cost, access, and regulatory compliance within government-sponsored health programs. This briefing will provide insights valuable for insurance professionals, investors, and policymakers monitoring Medicare Advantage's role in the broader health insurance landscape. Attendees will gain understanding of strategic trends, regulatory pressures, and market dynamics shaping Medicare Advantage's future trajectory in the U.S. health insurance sector. AM Best is recognized globally for its credit ratings and data analytics in insurance, emphasizing the significance of Medicare Advantage’s evolving market conditions within its evaluations. The panel event further illustrates the importance placed on this segment amid ongoing healthcare economic challenges.