There Could Be A 40% Hike For Health Insurance Premiums Due To COVID-19

Due to the pandemic, health insurance premiums could increase by 40% nationwide. It’s just a matter of time before it happens. Some experts say it will happen by 2021 and others believe it will take place sooner than that. Consumers, employers, and the entire healthcare system may see costs that could exceed $251 billion.

The one-year projected costs in the commercial market range from $34 billion to $251 billion for testing, treatment, and other care linked to the virus. For now, at least the largest health insurers say they will waive the copays and cost-sharing for people tested with the coronavirus. Some states such as California, New York, and Washington have ordered health insurers to waive patient fees associated with the coronavirus.

Offering to waive cost-sharing may be one of the ways to limit the spread of the coronavirus. It’s also cheaper to provide a free flu vaccine than to cover the cost of a visit to the doctor. This is the time to buy health insurance. As already mentioned, the cost of health insurance premiums may increase significantly due to the unexpected costs of treating people with COVID-19.

In a nutshell, insurers will try to recoup the staggering costs by raising their rates. Insurers are not sure what the costs for coronavirus will be in 2021. This is something they have to predict along the way as they set their rates. Keep in mind that research on vaccines and antivirals is still underway. Also, it’s unclear whether COVID-19 is a seasonal virus like the flu.

Insurers generally set up their rates between May and June. Individual health insurance rates are set for this year though. Nothing should stop you from obtaining coverage now. This is the time to buy health insurance.  Request a health quote from a licensed insurance agent today.

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