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The Effects of 2022 and The Corona Virus on Group Medical Insurance

| February 02, 2023


     The Corona Virus has affected the citizens in America negatively. From the shutting down of businesses, to "nonessential" deemed employees getting laid off. It caused panic at the grocery stores, and we still have a shortage of microchips for things like cars, gaming systems, washing machines, and most electronics.  

     While I can go on and on about the negative effects of the Corona Virus, I wanted to pinpoint that many Americans stopped going to their annual physical. At least in person. This comes at a time when the Boston Journal stated that healthcare costs increased 3.2% in 2022 and are expected to increase to 5.4%. Although the initial increase may bring about higher costs in the beginning, the preventative care may result in lower costs in the future because symptoms or conditions can be caught earlier.  

     Another factor that may contribute to the rise of healthcare costs is the increased use of behavioral/mental health services. In the first year of Covid alone the prevalence of anxiety and depression increased by 25%, according to the World Health Organization.  

     When costs increase, so do the fears of employees or individuals spending money on their healthcare or medical needs, and not having enough money to put food on the table for their families. Many people won’t have an ailment or symptom looked into until it’s necessary, strictly because they’re afraid of the cost. Just think about this, a diabetic won’t notice their blood sugar dropping over a period of days, but what they will notice is a heat attack. This is when it’s a very expensive situation for the insured and the insurance company, which will continue to make the cost of healthcare rise.  

     While most of this blog has been about the negative effects Corona Virus, a positive is that virtual visits have become very popular. While the evidence may be too premature to really measure, it seems that telehealth may also be a way to help keep the costs of healthcare down. Not only for the insured, but for the insurance carrier as well. Only time will tell, but the early data looks promising.  

     2022 and the effects of the Corona Virus may still be hitting us for the years to come in ways that we’re unsure of now. All we can try to do is stay informed.