Here’s a twist on health care costs. Perhaps instead of using “cut” defer or delayed may be more accurate. What happens with the accumulated demand?
The COVID-19 pandemic could reduce health care costs nationwide by up to $575 billion in 2020, according to a new report by a leading consulting and actuarial firm. Analysts from Seattle-based Milliman Inc. said that the lingering health crisis caused by the novel coronavirus was leading patients to put off elective procedures, in a trend that would “dwarf” the added costs of COVID-19 testing and treatment. “While the testing and treatment of COVID-19 patients is increasing health care costs across the country, these expenses are dwarfed by the cost reductions resulting from the deferral of nearly all elective care and other care that can be delayed,” said Doug Norris, principal and consulting actuary.