What Will Happen To The Insurance Industry After COVID-19?

Many Americans are on the brink of financial ruin because of the flailing economy, which took a nosedive nearly as soon as it became widely known the coronavirus was in the US to stay. With the rate of infection and fatality accelerating faster everyday, things are only guaranteed to get worse. What will the country’s healthcare system look like a few months from now? And how will the insurance industry adjust to the realities of coronavirus and COVID-19?

Millions of Americans are out of work due to the worsening crisis, and a $1200 check from the government won’t change that. Most people who lose their jobs will also lose their health insurance benefits, which means they’ve been paying into a system they will never be able to use. 

Some have been comparing the system to social security. When one pays social security taxes, it doesn’t matter if they stop working — they’re guaranteed something, no matter how little. Why shouldn’t health insurance work the same way? Even if you stop paying into the pool, you were paying. So when you stop, why shouldn’t you get at least a little helping hand when you get sick?

But the system will likely never work that way.

More likely, millions of Americans will soon be pressing for universal healthcare rights. Most Americans already believe healthcare should be a right, but conservative lawmakers have stalled efforts to enact such a system while describing it as a progressive pipedream. Tell that to the millions of people who are suddenly unemployed because of the very disease about to send them to the hospital.

COVID-19 is the reason they lost their jobs and the reason they can’t pay for COVID-19 related medical treatment? The flaws of the system were apparent to millions of Americans before COVID-19, but they’ll be even more apparent to many more after the crisis is over.

The harsh reality is this: the private health insurance industry might be destined to flatline as a result of this pandemic — but that moment won’t come soon enough to help those whose bills will become due much sooner. Lawmakers will have to deal with that fallout. Americans will be worried, angry, and searching for someone to blame. Who will fall first? That’s the real question.

For now, the best we can do is prepare for the worst case scenarios by staying indoors whenever possible. Do you have an insurance claim resulting from COVID-19 medical care? Contact a qualified insurance attorney today!