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    Should You Upgrade Your Current US Health Insurance Because of COVID-19?
    05-11-2020

    Should You Upgrade Your Current US Health Insurance Because of COVID-19?

    There have been a reported 8.6 million coronavirus cases in the united states, with over 200,000 reportedly dead. As of October 24, 2020, the country only recorded 78,586 cases, with about 871 deaths. The alarming rise in the COVID-19 infection amongst the United States citizens has caused the US-health care system to be upgraded to handle the virus's problems. Like Health Sapiens, many health organizations have had their hands full in curtailing the effects of the virus and the virus itself.

    People are encouraged to take various health and safety measures to minimize the risk of contracting the virus. Some of these measures include social distancing, self-isolation, frequent washing of hands with soap and water, among many others. Though essential, these measures cannot fully combat the virus and ensure, somewhat thoroughly, health security. No matter how cautious an individual is, there is a probability that an unwanted mishap might occur. This encourages the option of health insurance. Quality health insurance is essential to surviving the coronavirus pandemic. Apart from the various measures that people should keep, there are always unexpected exigencies that could occur.

    Therefore, it is an indispensable option for everyone to know their physical and financial health; hence, the role of health insurance. Prior to the Covid-19 pandemic, there has been an influx of global diseases that have threatened to collapse many a nation's economies. We have had to battle Ebola, Zika, Mers, et cetera. Therefore, it is crucial that one is well-equipped to handle these viruses' effects and perhaps, other unforeseen viruses as they might come. Quality health insurance would qualify as one that makes sure to cover all the costs incurred on treatments arising from these viral infections and those from other ailments still to come. There are some health insurance companies, like eHealth insurance, that offer quality insurance policies.

    The best way to combat the pandemic's effects is to have a robust healthcare system and policies that help the citizens get easier access to quality healthcare. It is also necessary to implement policies that would check the rise in the premium rate for health insurance. Many citizens have lost their jobs and, therefore, their means to quality health insurance is at risk.

    Will Health Insurance Increase Next Year?

    Facts show much uncertainty in pinpointing whether the medical-cost trends will be lower or higher in 2021. However, many employers report an increase in the premium rate from about 3% to about 4.5% from insurers for 2021. We also found that insurers, many of whom did not foresee the large scale effect of the virus, have had to shell out so much money to cover the coronavirus treatments of their clients. To cover for their losses, they may have to complicate the existing models they use in setting their prices. To answer the question of the increase in premium costs for next year, one would need to consider the following;

    Would the pandemic extend past 2021, or would it have ended by then?

    It will be less justifiable for insurers to increase the premium rates for 2021 if the virus can be contained this year. If the virus lingers and more people get sick, then it is possible that insurers could assume that there might be new expenses relating to the outbreak next year. While the bills have increased a bit this year, there might be a spike in the premium rate next year if the cure has not been found.

    Would the insurers need to dip into their reserves to cover coronavirus costs?

    Primarily, insurers are not allowed to cite the losses incurred in a year to justify hikes in premium rates for the next year. However, there is an exception: if the insurers have to dip into their reserves —the funds they have saved up over the years— to cover the coronavirus pandemic costs, they may increase the premium rates. Due to a health emergency, if insurers eat deep into their reserves, they have legal backing to raise rates. Insurers are likely to drive up the premium rate considering the following factors;

  • A lot of persons are getting sick and are therefore racking up big medical bills.
  • Health insurers are paying more healthcare costs than usual, driving up their costs and depleting their reserves.
  • Many persons cannot afford their insurance premiums due to the pandemic, which implies that the income is not as high as before.
  • How many elective surgeries would get postponed into 2021?

    Many US hospitals postponed elective surgeries to have more space for patients with coronavirus infection. While elective surgeries can be quite tricky sometimes as some are urgent, and others are dependent on the health personnel's deductions, their postponement into next year may justify the hike in insurance premium rates.

    What would Congress do to ensure that health insurers absorb their losses from the pandemic?

    Government policies are a significant factor if the rate price is to be determined. If the government decides to help health insurers offset their losses and fund them, there will be no justification for increasing the insurance premium rate.

    Though quite expensive, people must get quality health insurance to cover the virus's costs incurred effectively. A quality health insurance policy would help you better manage the disease whenever it comes while protecting your funds. You are also assured of protection whether you eventually contract the virus if you do not. Many people get their Insurance from their jobs, but that is not to say that without the jobs, they cannot have Insurance. Some NGOs offer health insurances that you can check out. The government has also provided means by which citizens can be protected and covered by unforeseen medical expenses.

    You must check out online insurance companies' reviews before contracting with them. You may check with US-Reviews on the available insurance companies in the United States. These reviews would enable you to make better decisions on what company you should patronize. You should know about home insurance quotes and understand the insurance company's terms and conditions before signing the contract deal.

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