With so much uncertainty surrounding widespread treatments and hospitalizations for coronavirus patients across the U.S., employers could face significant increases in healthcare benefits costs due to the COVID-19 pandemic. A new analysis by Covered California estimates that premiums could increase from 4% to 40% next year if insurance companies try to recoup costs incurred during the outbreak.
According to the analysis, insurance companies set prices for the commercial plans that individuals and employers buy “well before there was even any hint of the virus,” Peter V. Lee, Covered California’s executive director, told the New York Times. “No insurer, no state, planned and put money away for something of this significance.”
What does this mean for your bottom line and how can Healthcare Bluebook help mitigate these sudden increases in healthcare costs?
Despite employers and employees taking appropriate precautions at this perilous time, the coronavirus continues to spread and place enormous pressure on our healthcare system. Currently, one-year projected costs for COVID-19 in the commercial market range from $34 billion to $251 billion for testing, treatment, and care related to the virus.
In addition, Willis Towers Watson estimates that employer costs per infection will range (depending on the severity): $250 for a mild case, $2,500 for a moderate case and $30,000 for a severe case that requires hospitalization. And if an employee develops a catastrophic case of the virus requiring a stay in an intensive care unit, costs are likely to top and surpass $100,000.
While insurers have enjoyed strong profits in recent years, the cost of the pandemic could be overwhelming, especially to employers and workers already struggling to pay for coverage.
One thing is for sure—With so much still up in the air, employers must find ways to curb future healthcare benefits costs NOW. That’s where Healthcare Bluebook comes in.
Our easy-to-use price and quality transparency tool helps members find—and schedule care with— high-quality providers for common outpatient procedures and more complex inpatient procedures, which can increase your total savings by 50% or more per case. Using industry leading cost and quality data, Bluebook empowers members by providing them with the information they need to become smarter healthcare consumers, which helps their employer save money and improve employee outcomes.
Are you ready to learn more about Healthcare Bluebook? To schedule a meeting, Contact Us today!