Sep 02, 2020
California insurers are bearing billions of dollars in unexpected costs for COVID-19 testing and treatment, according to a study by researchers at the University of California, Berkeley, School of Public Health. Commercial insurers bear about 59% of the added costs, which could lead to higher health insurance premiums down the road.
The COVID-19 pandemic has cost California’s public and private insurers an estimated $2.4 billion in testing and treatment — about six times the annual cost to treat seasonal influenza. Without a vaccine, this number could reach $25.1 billion before the population reaches herd immunity. That represents about 6% of California’s total annual health care spending.
These costs only account for testing and treatment of acute COVID-19 infections, not possible long-term complications or the costs related to delaying care for other conditions.
