OLDWICK, N.J.–(BUSINESS WIRE)–In this episode of AMBestTV, Sally Rosen, senior director, AM Best Rating Services, said health-related insurers, including those that write stop-loss coverage and a variety of Medicare and Medicaid-oriented coverages, are more likely to be affected by the expected upsurge in claims activity related to the coronavirus. Click on http://www.ambest.com/v.asp?v=coronavirushealth320 to view the entire program.
U.S. health insurers that insure larger portions of higher risk patients likely will experience a rise in claims.
“There will be claims for people getting tested in doctor’s office, urgent care and emergency rooms,” said Rosen. “Additionally, the at-risk population and the elderly, as well as people who already have compromised immune systems will be filing claims. Conversely, you may see less regular claims as people who have non-urgent conditions may opt either not to go have a procedure done or go to the doctor’s office over concerns about the virus.”
Rosen highlighted the stop-loss insurance segment as a sector that may warrant closer attention.
“AM Best will be looking at all health insurers—those that write traditional health insurance as well as stop loss writers. Stop loss writers may take a hit for very large claims and if there is a high number of large claims in aggregate. Furthermore, there will be a concentration on regular health insurers, companies that write segments on large portions of the at risk population, long-term services and support contracts, Medicare Advantage and supplement, as well as Medicaid, specifically the special needs plans.”
To access a copy of this commentary, titled, “Potential Rise in Claims Due to Coronavirus,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=295209.
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