It should not be a surprise to anyone that the health care crisis is going to cost a lot of money. Whether that is built into premiums or absorbed by some federal program or subsidies, the costs are ours.
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Congress needs to mitigate what could be substantial cost increases for both insurers and their members due to the COVID-19 pandemic, warns Covered California, the Golden State’s Affordable Care Act marketplace.
The one-year projected costs in the commercial market range from $34 billion to $251 billion for testing, treatment and care specifically related to COVID-19, according to Covered California’s policy/actuarial brief, “The Potential National Health Cost Impacts to Consumers, Employers and Insurers in the Commercial Market Due to COVID-19.”
In the absence of federal action, premium increases in the individual and employer markets for 2021 — which are in the process of being set now — could be 40 percent or more solely because of COVID-19 costs.
“Covered California’s analysis shows the impact of COVID-19 will be significant, and that absent federal action, consumers, employers and our entire health care system may be facing unforeseen costs that could exceed $251 billion,” says Covered California executive director Peter V. Lee. “Consumers will feel these costs through higher out-of-pocket expenses and premiums, as well as the potential of employers dropping coverage or shifting more costs to employees.”
Source: ACA exchange warns of 40% or more premium increase in 2021 due to COVID-19 | BenefitsPRO
If they are trying to set the rates now for 2021, I would expect large increases for 2022 too as the final costs from the pandemic are calculated after the 2021 rates are set. I am sure the rates will increase for the next few years.
But it is a small price to pay. Look at Europe’s nationalized healthcare counties. The death rate of those infected is up to 12%. In America where the free market drives care, as of today it is currently sitting at 2.5%. Pay me now or pay me later.
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