2020 JUN 08 (NewsRx) -- By a
The Best’s Commentary, titled, “COVID-19 Impact on Health Insurance Companies Smaller Than Expected,” notes that while there have been more than an estimated 1.5 million reported cases of COVID-19 across
According to the commentary, first-quarter 2020 statutory earnings will decline year over year, primarily driven by the return of the health insurer fee (HIF), which is expensed in full in the first quarter. Health insurers largely pass on the HIF, which is approximately
Claims volumes could decline again if there were to be a second wave of COVID-19, which could again lead to the deferral of non-essential surgeries and visits. Additionally, consumers and providers have embraced tele-health/virtual visits as an alternative to in office care, a trend that is likely to continue. Certain carriers have reported that the number of tele-health visits increased substantially in the first quarter of 2020, and are even paying at parity in the short-term with an actual face-to-face office visit.
The impact from job losses also has not yet manifested into enrollment decline for health insurance companies; however, the risk of enrollment losses increases the longer the COVID-related closures persist. AM Best is maintaining a stable market segment outlook on the
To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=297562. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
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