April 9, 2020
A new analysis commissioned by America’s Health Insurance Plans has concluded that the costs to the health care system from COVID-19 could range from $56 billion to $556 billion over the next two years.
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The report by Wakely Consulting Group considers the impact of COVID-19 to commercial, Medicare Advantage and Medicaid managed care plans, AHIP said in a statement. Assuming a 20% infection rate among the study population, the researchers estimated that more than 50 million Americans will become infected, with at least 5.5 million requiring hospitalization – of which 1.3 million will require intensive care.
For each person admitted into intensive care, costs could exceed $30,000 on average, according to the association. Total out-of-pocket costs for individuals could range from $10 billion to $78 billion.
AHIP CEO Matt Eyles said health insurers “have stepped forward to proactively waive out-of-pocket costs for testing and treatment.”
“These essential actions are ensuring that both the health and financial stability of hundreds of millions of Americans are protected at a time they need it most,” he said.”And for hospitals, it eliminates the need to bill and collect from patients so they can focus on caring for their patients.”
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