Will the pandemic mean higher health care costs in the future?
Share Now on:
The COVID-19 pandemic is producing a deeply uncertain period for the economy, and one of the places that’s playing out in a big way is in health care — specifically, what consumers will end up paying for their care and health insurance down the road.
Covered California, the state health insurance marketplace, has a report out estimating COVID-19 testing and treatment will cost the commercial market between $34 billion and $251 billion. The report finds that insurance premiums in private plans could jump from 4% to 40%. That’s a pretty big range, and it has a lot to do with no one knowing how costs will be distributed across the health care landscape.
“Some of the costs of treating patients with coronavirus are just not being paid for at all,” said Ateev Mehrotra, who teaches health care policy at Harvard University.
But this much is certain: the bills will come. Some will get picked up by Medicare and Medicaid, and others by private insurers and individuals. And some costs will be eaten by clinics and hospitals, Mehrotra said.
But there may be mitigating factors that limit the financial impact of the pandemic, he added.
“Patients are understandably scared to go get health care, so a lot of other forms of healthcare have been reduced,” he said.
Discussions about coronavirus costs, and who pays them, are happening now, said Benjamin Isgur, who leads the Health Research Institute at PWC.
“If we’re thinking about the employer insurance market, this is the time period when health plan actuaries are starting to think about what next year’s costs will be,” he said.
The problem is, those actuaries, when trying to figure out what employers and individuals will have to pay, have little data to work with.
COVID-19 Economy FAQs
Which businesses are allowed to reopen right now? And which businesses are actually doing so?
As a patchwork of states start to reopen, businesses that fall into a gray area are wondering when they can reopen. In many places, salons are still shuttered. Bars are mostly closed, too, although restaurants may be allowed to ramp up, depending on the state. “It’s kind of all over the place,” said Elizabeth Milito of the National Federation of Independent Business.
Will you be able to go on vacation this summer?
There’s no chance that this summer will be a normal season for vacations either in the U.S. or internationally. But that doesn’t mean a trip will be impossible. People will just have to be smart about it. That could mean vacations closer to home, especially with gas prices so low. Air travel will be possible this summer, even if it is a very different experience than usual.
When does the expanded COVID-19 unemployment insurance run out?
The CARES Act, passed by Congress and signed by President Donald Trump in March, authorized extra unemployment payments, increasing the amount of money, and broadening who qualifies. The increased unemployment benefits have an expiration date — an extra $600 per week the act authorized ends on July 31.
You can find answers to more questions here.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.
Thanks to our
Your support keeps us going strong, even through