For-Profit Health Insurance Need to be Abolished by the U.S. Health InsurersApril 15, 2020
As per a new analysis, health insurance companies in the U.S. are gearing to raise the health plan premiums by around 40 percent or even more from next year amid the coronavirus pandemic. This analysis confirms America’s healthcare system is primarily driven by the profit motive. It is not aptly equipped to provide necessary medical care for all, particularly in a time of nationwide crisis.
This analysis was conducted by Covered California, which is the state insurance marketplace created under the Affordable Care Act. If health insurance companies wish to recover their 2020 cost, the price for the same level of coverage may increase from 4 percent to more than 40 percent. Therefore, health insurance carriers to protect their solvency may need to increase the 2021 premium to tackle the crisis caused due to COVID-19.
This analysis further states, the health and economic impacts of the coronavirus outbreak are staggering. It could result in more consumers and employers being unable to afford coverage. This will also lead employer groups to drop coverage, and even individuals may decide to stay uninsured. According to the Kaiser Family Foundation, more than 80 million people in the country are underinsured or uninsured, and millions more are on the verge of losing their employer-based coverage.
The COVID-19 impact will not only increase the jobless rate, but its impact is also going to be significant. Its impact will be aggravated due to the absence of federal action. Consumers, employers, and the entire healthcare system will have to face unforeseen costs that might exceed $251 billion. Consumers will feel these costs either in the form of higher out-of-pocket expenses or increase premium amounts.
Even employers are expected to drop coverage or transfer more costs to employees. Due to these staggering prices, most of the Americans may lose their coverage and can remain uninsured while battling a global health crisis.
In response to the analysis of the Covered California study, Sen Bernie Sanders tweeted, “Now is not the time for greed, now is the time for Medicare for All.” Sen Bernie Sanders is a 2020 Democratic presidential candidate and has advocated for Medicare for All proposal that could eliminate private insurance in the U.S.
The new research comes at a time when the Coronavirus crisis is exposing flaws in the dysfunctional healthcare system of the U.S. The private health insurance companies of the U.S. are unable to make changes in health plans, despite healthcare providers are looking to change course. It seems that private carriers are more concerned about earning money and least bothered about people. It is clear from several incidents that show uninsured people are denied of COVID-19 treatment at urgent care centers, mainly because they don’t have health insurance.