As the grappling no. of victims increase daily on a worldwide basis, the health insurance firms expect a massive profit mark. The corona virus pandemic is sending hoards of new patients running to the hospitals which are already overflowing with the old ones. However, it isn’t all hunky-dory in the insurance firms as insurers say that non-emergency surgeries’ cost may face turmoil somewhere else.
The firms are seeking an intervention from the congress as costs could remain modest or quickly outstrip savings. Fearing the recession, or the fresh wave of coronavirus in the upcoming winter, the insurers expect treatments upsurge. All that uncertainty for the companies could trigger far higher premiums for consumers if insurers hedge their bets. Then again, the current savings insurers are seeing — along with cautions from state regulators about pushing cost-sensitive customers away during an economic downturn — might result in minimal premium increases. The dichotomy puts them on a stand of uncertainty about the future of the industry.
“Insurers are nervous, to be sure,” said Michael Kreidler, Washington state’s insurance commissioner. “But so far they are telling me they are in good shape. Coronavirus claims have not been that high — yet.” He further states that the US insurers are looking at an inevitable profit in the coming months as the Moody reports predict.
Following the report of UnitedHealth Group Chief Executive David Wichmann, the cost deductions till date are transcending expenditures for COVID-19. The revenue compared to the previous year. Other insurers, including Centene, Anthem, Humana, and Cigna, are scheduled to release earnings reports this week.
A set of modifications in regards to the policymakers, such as constrain the growth in deductibles and other out-of-pocket costs, according to consumer advocates, regulators, and policy experts, are expected to roll out next year. “The last thing we need is insurers pricing their coverage unnecessarily high at a time like this,” said Peter Lee, executive director of Covered California. The survival of the health insurance industry is majorly reliant on people whose jobs do not cover their health insurance. A loss of employment in the current pandemic milieu has upped the stakes for the insurance holders.
Some relief, although provided by the coverage of COBRA federal law, the cost of health care would still burn a hole in the pockets of the people. The insurers have moved to congress in hopes of the full relief coverage.