Impact of the Coronavirus on the health industry

Any health insurance company must plan for potential events, including low and high-frequency disasters such as earthquakes, Elnino and Swine flu pandemics as part of their business risk measures. An insurance company’s risk modeller should always forecast possible losses and ensure that they have set measures to cushion the company if any of these impacts occur. But how ready was the entire health industry on the onset of COVID-19 pandemic, and what does the sector’s future hold? This article explores the impacts that the pandemic had on the health industry and its future.

Long term care will have to be reconsidered
Amid the multiple hardships that the pandemic has posed globally, is the fear imparted among people with loved ones in nursing homes and such facilities. Through observing the present crisis, such facilities pose the risk of being infection hubs. In the future the healthcare industry will have to reconsider and rethink having healthcare assistance programs as with the covid-19 the nursing homes, elderly homes and such facilities will not offer the care they are intended but instead may serve to increase the risk of infection.

There should be greater emphasis on strategies used for claim control
Some form of healthcare responsibility will be shifted to employers who will be expected to look at how they can reduce unpredictability and improve the population’s health management. This might include strategies that entail a more robust emphasis on programs and strategies of risk management and advanced reporting and data procedure. There will be an increase in companies going to actuaries and consultants for audits, trend analyses and projections. Thus, more companies will consider programs of population management as a long-term approach to ensure a healthier population and thus will help minimize operational risk and lower costs of claims in case of such another catastrophe. The covid-19 pandemic has left companies with an obligation to encourage a healthy workforce if they are to flourish.

Telemedicine will stay
While telemedicine was in its early adoption stage, the covid-19 pandemic has revealed its real value. The covid-19 pandemic has imparted some germ-phobia among individuals, and this form of fear is not likely to go away any time soon. For example, people have been left wondering why they would go to a hospital or clinic to get a prescription, diagnosis, or consultation when they may contract the virus while in the health care centres. With telemedicine, this fear that most people are having is addressed as regardless of one’s location, with telemedicine, you can get the medical care without worrying about overcrowding in medical facilities.

Expansion of coverage
With carriers and government having exclusions to the policies that existed before the onset of the pandemic. It is undoubtedly that there exist serious coverage gaps and to enhance care. These exceptions need to be incorporated into health plans. Areas that will benefit from expansion coverage include extra prescription refills, telemedicine, mental and health plan, specialized treatment vaccines, among others. The outcome will be a general wider offering of benefits.

Generals Impact on health insurance companies
With the rising deaths occasioned by the pandemic, as wells as more people contracting coronavirus, it is undoubtedly that more people will file claims. The insurance companies should also consider the fall in the stock market and insurance and whether these impacts are long term or just temporary. With the high infection rate, each insurance company should be aware that its employees are at risk and plan for operational problems that will arise when employees tend to sick relatives or employees. Each companie’s insured persons’ distribution and age will hugely determine how real they will receive the impact.

There will be an increase in insurance companies that will collapse
Experts have already warned that we will witness an increase in the collapse of health companies. The pandemic has occasioned increased death rates and a falling stock market which have left specifically life insurance companies predominantly hard hit. More so, globally, businesses are deteriorating with the hospitality and airlines being one of the hardest hit. The hospitality and airline industry usually have comprehensive covers. Therefore, having to pay any claims that these industries files will put more pressure on insurance companies that are already burdened.

In conclusion, the covid-19 pandemic effects were unprecedented. While almost all sectors were adversely affected, the health sector was hit most. This article has explored the impacts the pandemic had on the health industry and insurance companies. With health insurance companies going to the future, it is essential that when taking a policy one looks out at review sites such as the UK collected reviews  to know whether a company polices have included plans that will be beneficial in times of a pandemic.