Once the pandemic hit, the Pew Research Center reported that 1 in 4 Americans either experienced job loss personally or had someone in their household lose their job. For many, losing their job also meant losing their health insurance.
On a larger scale, a spike in unemployment has a ripple effect on the rest of the economy. While the insurance industry is able to handle minor fluctuations in enrollment, a pandemic is unprecedented.
The result is fewer enrollees and more claims.
Here’s what you need to know.
Fewer Enrollees May Affect the Claim Reserves
When people lose their jobs, they may also lose the health coverage that came with it. As such, insurance companies may see a drop in their enrollment rate during times of high unemployment. This means that fewer people are paying premiums, which could threaten the claim reserves in the long run.
As the name suggests, insurance companies use their claim reserves to finance claim payments. That way, when you file a claim, the insurer is able to pay it according to the specifications of your policy. But when there are fewer enrollees paying premiums, the claim reserves may start to shrink.
The good news is that insurance companies are figuring out how to adapt to these unprecedented times so they can continue to offer the best service to their customers.
Delaying Preventive Care May Lead to Higher Claims
Many people are delaying preventive care during the pandemic. This is because people are worried about potentially catching COVID-19 from their doctor’s office.
If this describes you, please know that your doctor is taking every precaution to keep you and the rest of their patients safe. If you have any questions about their safety protocols during the pandemic, please don’t hesitate to reach out to their office.
We cannot overstate the importance of preventive medical care, especially since it could help you save money in the long run.
Routine doctor visits are essential for people with chronic conditions like diabetes. Likewise, your doctor may be able to spot the warning signs of a health condition before it has the chance to worsen.
Detecting a medical condition early may affect your treatment time, prognosis, and possible recovery. But when you put off preventive care, you deprive yourself of the opportunity for early detection.
When medical conditions go untreated, they may require more expensive care in the future. This can lead to higher health insurance claims.
Need Help Shopping for Group Health Insurance?
MI E-Benefits is a group employee benefits agency that’s big enough to serve and small enough to care. As such, we’d be more than happy to help you explore your options for group health insurance. We also offer individual health coverage to those interested.