The Coronavirus Pandemic And Health Insurance Companies: How Would It Affect The Costs?

The pandemic crisis raises severe problems in so many sectors of the global economy. One of the most affected sectors is the health sector. It has far-reaching effects on the health care system’s structure, costs, and insurance. There are many excellent health insurance companies, check out NewPlanOptions preview experiences, but with the raging pandemic, some questions are raised on the effects it has on these companies. The many questions and issues that the virus raises are;

  • How many people will lose their health insurance?
  • Will private insurance companies increase their prices exponentially as time goes on?
  • Will rules for high-deductible health plans change after the coronavirus pandemic?

Let us answer these questions;

1. How many people will lose their health insurance?

Many people obtain their insurance from the companies they work with or with which they are employed. It is estimated that over 35 million people will lose their jobs due to the pandemic. This implies that over 35 million people will lose their health insurance coverage. There is the option to remain on the employer’s group health insurance and pay the premium directly, but this is very expensive, and for someone without a job, it is suicidal.

While the health costs for the COVID-19 virus is free, the long-term effects of the virus might not probably be covered. This means that uninsured patients would pay a lot to cover health costs.

2. Will private insurance companies increase their prices exponentially as time goes on?

There are pieces of evidence to suggest that there might be a hike in the premium, by 40%, offered by health insurance companies by 2021. The hike will affect, it is suggested, all health plans not just sold on exchanges since all insurers are experiencing the same cost pressures and uncertainty about the future. Employers will face the brunt of this increase, and to bear the load without losses will shift some of the burdens on employees or reduce the amount of coverage offered. Whatever happens, there seems to a probable cause for concern in the costs of health insurance companies.

3. Will rules for high-deductible health plans change after the coronavirus pandemic?

A plan with a high-deductible means that patients have to pay very expensively before their insurance pays for the care they receive. Many people go for high-deductible plans because of their lower monthly premiums, but the risk is that, if they get sick, they pay far more than a lower-deductible plan.

The virus has increased the fear that there could be an increase in the cost of insurance, so patients on high-deductible health plans might avoid taking medical treatments, and this will result in worse health and a higher total health care cost.

Other ways to take care of our health will be to eat right, exercise daily, sleep well, et cetera. Still, seeing a doctor or going for monthly check-ups is vastly encouraged. With an increase in the cost of health insurance by companies, we would find that health treatments will be denied many and available only to a privileged few.

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