Pandemic will cost insurers $30B to $547B, report says

The COVID-19 pandemic could cost health plans between $30 billion and $547 billion, according to a commissioned report from America's Health Insurance Plans.

The report, from Wakely Consulting Group, analyzed how COVID-19 treatment costs will affect private health insurers for 2020 and 2021. Wakely modeled potential scenarios of costs for commercial health plans, managed Medicaid plans and Medicare Advantage plans.

When incorporating deferred care, treatment costs for health plans decreased for the two-year period to between -$76 billion and $216 billion. In addition, the report found members could see out-of-pocket costs of between $2.8 billion and $48.6 billion. 

AHIP said actual results will differ, potentially significantly, from the report's estimates. 

"While this new information has improved the analysis, there remain large levels of uncertainty on the ultimate impact of COVID on the United States and particularly the healthcare industry," the report said. 

Read the full report here.

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