2020 is a year that we will never forget. COVID-19 had a large impact on our health and emotional wellbeing. COVID-19 has had far-reaching impacts, which might have you wondering if you get COVID, will it impact your health insurance premiums?
Well, the good news is that the Affordable Care Act (Obamacare) bars insurers from discriminating against anyone due to medical conditions or charging them more than their ‘healthier’ policyholders. But, COVID-19 patients may face a range of side effects, which can become chronic problems, so overtime their insurance premiums might be impacted. Let’s delve a little deeper…
The Impact of COVID-19
To be sure, the coronavirus pandemic will have long-lasting impacts on our health care system. Former COVID-19 patients might be dealing with side effects from the virus including lung damage, heart problems, anxiety, depression, and more. Although in some cases, these issues should go away with time, the damage done to the lung tissue or heart can turn into chronic health problems. Not to mention, many of the patients hit the hardest have underlying medical conditions that could make their long-term Covid effects much worse.
Only time will tell what the future holds for each individual patient’s health after surviving the coronavirus
The Cost of Treating Coronavirus
The cost of covering patients who end up in the hospital with the virus can amount to thousands of dollars. If there are major complications, the cost could reach $20,000 or more. Our hope with the vaccine becoming more readily available this spring, these costs for care could drastically change.
Have you tested positive for COVID-19 and have questions about your premium or the impact on your insurance? We can help answer your questions. Call our independent health insurance agents at McKnight & McKnight Insurance in Tampa, FL – 866-525-0368.
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Insurance Premiums & COVID-19
Due to the unpredictability of the pandemic, it was difficult for insurers to accurately predict the projected costs of healthcare for 2021. We are only a week into the New Year, and even with the promise of the vaccine, the pandemic is still a concern. Many premium changes to healthcare plans were minimal, even with the uncertainty of the pandemic.
In the state of Florida, there was an estimated 2% increase across all ACA-qualified insurer policies due to the pandemic. Of course, there are still many questions to be answered to know what impact COVID-19 will have on future health insurance premiums:
- Is the pandemic still going strong in 2021?
- Did insurance companies have to dip into their financial reserves to cover the costs of coronavirus care?
- Does Congress have plans to help insurers with possible financial losses from the pandemic?
We believe that it’s best to be prepared in case your insurance premiums go up slightly due to the pandemic. This is not likely because you may have contracted the virus, but because the impacts of COVID-19 are wreaking havoc on our healthcare system and the care needed to effectively treat the disease.
If your premium has gone up, your insurer might have adjusted their premiums to reflect the estimated impact of the coronavirus pandemic, including the cost of the vaccine. The median COVID-19 factor is around 1.9% which means your premium might have increased by this percentage – in addition to their expected annual price increases for healthcare policies.
Looking Forward
The most common reasons that insurers are increasing 2021 health insurance premiums are:
- Continued costs of COVID-19 testing
- Potential costs associated with widespread vaccination
- Rebounding medical services delayed in 2020
- Morbidity from delayed or deferred care/surgery
On the other hand, some insurers believe that the use of health insurance might be lower this year due to social distancing, and avoidance of routine care. Many insurers refrained from including any COVID-19 impacts in their premium costs due to the uncertainty of the impact of the pandemic.
Truthfully, it would be hard for insurers to justify large premium increases. There is still quite a bit of uncertainty surrounding the pandemic and its related costs, so we’ll just have to wait and see what the future holds for healthcare this year.
Concerned about catching COVID-19, but missed open enrollment? Call today or schedule your phone appointment online. In just a few minutes, we can discuss your options outside of open enrollment to find you affordable care options.
Call Our Health Insurance Experts
The last year has been hard, but we are here to make navigating health insurance as easy and stress-free as possible. If you need new health insurance due to job loss, or you missed Open Enrollment, we can help.
Schedule a FREE consultation with one of our licensed insurance agents at McKnight & McKnight Insurance Solutions or give us a call at 866-525-0368. Here, we are keeping the promise of affordable coverage!
