As Americans experience the full effects of quarantine, Covid – 19 news is blasting at us from every angle, we are fully informed about how to wash our hands, but if you contract the virus and are infected who is going to pay, and how much will it cost.

” A new analysis from the Kaiser Family Foundation estimates that the average cost of COVID-19 treatment for someone with employer insurance—and without complications—would be about $9,763. Someone whose treatment has complications may see bills about double that: $20,292. ” according to Abigail Abrams from Time Magazine

The reality for Health Insurers is they can never withstand the full onslaught of 50 million Americans getting Covid-19 and needing treatment that costs $20,000 per patient would require that HealthCare becomes nationalized for a period – people dying will always trump people flying – so part of the bailout will be that Uncle Sam pays for healthcare-related to the Covid-19 global pandemic. It will change the way private healthcare and the single-payer system operates.

Bob Herman from Axios had an interesting exchange with public insurers below

Health insurance companies are not concerned yet that the new coronavirus is going to drive up their medical claims and spending.

The big picture: More people will need expensive hospitalizations to treat COVID-19, which has turned into a full-blown public health emergency. But insurers view the outbreak as an “extension of the flu season,” according to a Wall Street bank that spoke with insurance executives last week.

What they’re saying: Barclays held its health care conference digitally last week, and several insurance executives reiterated their companies’ profit projections for this year — relatively remarkable statements considering economists believe a recession is imminent.

  • “We’re not expecting a material financial impact,” said Matt Manders, a top Cigna executive.

Between the lines: A lot more cases and hospitalizations are coming. But those will be partially offset, from an actuarial perspective, by delays or cancellations of costly elective procedures like joint replacements — something that hospitals are starting to do.

  • “There is a net saving” when nonemergency procedures are eliminated, Anthem CFO John Gallina told Barclays analysts.

The bottom line: The coronavirus is throttling almost every business in America. Large insurers think they’re mostly immune, and if medical claims start to rise uncontrollably, they will increase everyone’s premiums next year.

  • “We would price for this for 2021 to the extent there’s any meaningful impact,” Humana CFO Brian Kane said. “I would imagine the industry will as well.”

The easy way to watch how this plays out is the price of public insurance companies stock price, this will factor in Covid-19 out years to come, but in reality, Uncle Sam Healthcare is here because potentially 50 million Americans will contract the virus over the next few years, and no public company can withstand that cost without federal intervention.

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