The coronavirus pandemic could raise the price of health insurance premiums by as much as 40% in 2021, a new analysis shows.
Covered California released a breakdown of the effects of the COVID-19 virus on America's healthcare system and concluded that the extra money being spent to fight the virus and treat patients will likely end up causing premiums for millions of Americans to spike.
"The one-year projected costs in the national commercial market range from $34 billion to $251 billion for testing, treatment and care specifically related to COVID-19 — with the potential that costs could be higher than the high end of the range," the study's findings say.
"Potential COVID-19 costs for 2020 could range from about 2 percent of premium to over 21 percent of premium if the full first-year costs of the epidemic had been priced into the premium."
The study added, "Health carriers are in the process of setting rates for 2021. If carriers must recoup 2020 costs, price for the same level of costs next year, and protect their solvency, 2021 premium increases to individuals and employers from COVID-19 alone could range from 4 percent to more than 40 percent."
The coronavirus outbreak began in China late last year and has now spread across the world. As of Sunday afternoon, nearly 140,000 of the 715,000 global cases were in the U.S. — more than any other country.
More than 2,400 Americans have died after falling ill with the respiratory disease.
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