Tag Archives: COVID-19

How will the coronavirus affect health insurance enrollment?

In the United States, the COVID-19 pandemic has put millions of people out of work. A portion of the newly unemployed and their families are expected to seek health insurance coverage. Some have been furloughed, which allows them to keep their employer-sponsored health insurance while applying for unemployment benefits. Others may be able to find employer-sponsored health insurance coverage with parents or spouses.

Before the Patient Protection and Affordable Care Act (ACA), newly uninsured adults and families could purchase COBRA coverage, individual market plans, or short-term plans, enroll in Medicaid, or participate more fully in federal health options for which they were eligible. Today, newly unemployed adults and their families have the following additional options not available prior to the ACA:

  • Individual market plans through the state or federally run marketplaces with federal premium assistance for qualifying households
  • Expanded Medicaid coverage in 36 states
  • Young adults (under age 26) can enroll in their parents’ employer-sponsored insurance

In this brief, Milliman’s Annie Man and Barbara Dewey discuss the health insurance options available to the newly unemployed and how this may affect the ACA individual market.

COVID-19 and the future cost of coverage in the commercial health insurance market

Although pricing actuaries are trained to project future costs in environments of heightened risk, COVID-19 has introduced unprecedented disruption and uncertainty. The pandemic has affected all aspects of the healthcare industry and the American economy, altering the landscape in ways that may both increase and decrease expected costs. This volatile and uncertain environment also presents an extraordinary challenge for health plans developing rates for 2021 commercial coverage.

This paper by Milliman’s Jeff Milton-Hall, Tom Murawski, and Doug Norris is intended to help commercial health plans navigate this evolving environment. The authors discuss key considerations for how the pandemic and its aftermath could affect the cost of health insurance coverage in 2021.

Health coverage options for the COVID-19 unemployed population

Over a five-week period in March and April, approximately 26 million Americans applied for unemployment benefits. As a result, many have lost their employer-sponsored health coverage. The U.S. healthcare system has never had to reenroll this many people this fast.

Fortunately, individuals facing changes in employment have several options for maintaining health coverage. However, navigating those options can be confusing. Among the options are COBRA, the Children’s Health Insurance Program (CHIP), and the Patient Protection and Affordable Care Act (ACA).

In this article, Milliman’s Les Kartchner and Troy Pritchett outline a road map that newly unemployed Americans may find useful as they sort out their options, offering perspective on potential factors that can be expected at the macro level.

Infographic highlights potential out-of-pocket costs for patients requiring COVID-19 hospitalization

Although it is too early to analyze actual healthcare cost data for those who have been treated for COVID-19 in the United States, historical data from patients who have sought medical attention for influenza or pneumonia may be informative for understanding patient out-of-pocket costs due to treatment for COVID-19.

This infographic, based on Milliman’s recent paper, “Potential out-of-pocket costs for patients requiring hospitalization for COVID-19,” depicts what hospital costs could look like for patients admitted for COVID-19, broken down by insurer type, geography, and age.

COVID-19 considerations for pet insurance industry

The 2019 State of the Industry report from the North American Pet Health Insurance Association shows continued growth in the pet health insurance market. At the end of 2018, nearly 2.43 million pets were insured in the United States, an increase of 18% from 2017.  Gross written premium also shows similar increases, growing to $1.3 billion at the end of 2018.

Despite this growth, veterinary daily visits have fallen nearly 19% year over year from March 25 through April 5 as a result of social distancing efforts related to COVID-19.  With the decrease in veterinary visits, it’s almost certain that the pet health insurance industry is going to be impacted by COVID-19. At this point, it’s unclear whether that impact is going to be positive or negative.

In this article, Milliman’s Jamie Shooks explores how the pet health insurance industry could be affected by the COVID-19 pandemic.

How will the coronavirus affect Medicare Shared Savings Program ACOs?

The COVID-19 pandemic has created many uncertainties for providers and accountable care organizations (ACOs), which can seem overwhelming. Medicare Shared Savings Program (MSSP) ACOs are particularly concerned about the potential for 2020 results to decrease because of the virus. In this paper, Milliman actuaries discuss eight key considerations for MSSP and other risk-sharing arrangements as they assess the impact of COVID-19.