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COVID-19 costs could reach $556 billion over two years

The cost to insurers from COVID-19 could range from $56 billion to $556 billion over the next two years, according to a Wakely Consulting Group study that was done for America’s Health Insurance Plans.

AHIP retained Wakely to explore the potential cost implications of COVID-19 testing and treatment to health insurers for 2020 and 2021.

Outcomes will differ depending on the number of Americans who become infected but are asymptomatic, the impact of interventions such as social distancing, and the availability of testing.

Hospital costs could exceed Wakely’s estimates if average intensive care stays are longer, more expensive or require more services than estimated in these models.

WHAT’S THE IMPACT

The report considers the impact of COVID-19 to commercial, Medicare Advantage, and Medicaid managed care plans.

Assuming a 20% infection rate among the study population, the report estimates that more than 50 million Americans will become infected, with at least

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