Insurers may raise premiums up to 40% due to COVID-19 costs, Covered California says

Costs due to COVID-19 testing and treatment could cause health insurers to significantly raise premiums for 2021, according to an analysis from Covered California. 

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The analysis, which considers different scenarios of how the pandemic will play out, projects costs in the national commercial market to range from $34 billion to $251 billion. Cost includes testing, treatment and COVID-19 care.

When compared to premium, the analysis predicts COVID-19 costs could range from about 2 percent of premium to more than 21 percent of premium.

Health insurers are in the process of setting their rates for 2021. With these costs in mind, health insurers may raise their premiums between 4 percent and more than 40 percent to recoup 2020 losses, according to the analysis.

More articles on payers:
16 insurers waiving costs for COVID-19 treatment
Trump administration to use hospital stimulus funds to pay for uninsured COVID-19 treatment
Humana to expedite claim processing, suspend more prior authorization rules

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