Looking into End of Year Predictions for Healthcare Claims
With 2020 being one of the most unpredictable, volatile years within the last decade, it’s only fitting that the world of insurance see a direct impact from nation (and world) wide events. As we begin to look into the end of the year, and even into 2021, experts are expecting healthcare claims to have higher than usual claim activity.
The Impact of COVID
Our foresight into this impact on claim activity stems from a statistical review with our actuaries, Milliman. According to Milliman, next spring will have a higher than usual claim activity due to the delayed claim activity COVID created. Because elective procedures were halted and non-emergency situations were less due to people staying home quarantined, healthcare claims have been low since COVID fully “emerged” in the U.S. in early March.
As a result, some fully insured carriers have offered rebates for companies, and self funded businesses have had higher surplus to budget.
What This Means for Healthcare Claims?
The bottom line, here, is that where there is a dip, comes a natural rise. And because healthcare claims were low during this time of uncertainty, we expect that 2020 renewals to be lower and 2021 renewals to jump higher than anticipated. There are strategies businesses can contractually do today to limit future risk of anticipated 2021 claim activity.
However, every business, industry, and circumstance is different, and it’s vital that businesses work directly with their insurance provider to ensure any and all claims that come through are managed properly.