How Has COVID 19 Affected Personal Insurance 1

How Has COVID-19 Affected Personal Insurance

Whether you are a business owner, an employee with benefits, or an individual looking for personal insurance on your own, you’re probably wondering how the Coronavirus pandemic has affected your insurance premiums and coverage. The truth is, some people have seen little to no change in their policy, while others have experienced significant changes, including losing their insurance benefits. 

Unfortunately, COVID-19 has affected private and ACA-based health insurance companies across the U.S., forcing insurers to restructure their insurance plans, premiums, and other coverage areas. Below, we look at how COVID-19 has affected personal insurance and what you can expect in the future.

Loss of Benefits Due to Job Loss

The most obvious consequence of COVID-19 has been the loss of benefits due to layoffs or temporary suspension of jobs. According to the latest data, nearly 22 American million jobs were lost in almost every industry and on almost every level, from entry-level jobs to executive positions.

Companies have let go of countless employees along with their salaries and health insurance benefits. It has left millions of Americans without health insurance. Losing insurance means losing benefits across the board, including prescription medications, doctor visits, surgical procedures, exams, and additional benefits such as dental and vision.

Higher Unemployment Rates

Although layoffs have been high, unemployment has been even higher. Companies have chosen to either forego hiring more employees or hiring employees full-time with benefits to save money during the pandemic. Individuals who do find jobs may still find themselves without insurance regardless of how many hours they elect to work. 

While the trend has affected larger corporations, it has also affected companies of all sizes down to self-employed individuals who work from home. Remote workers have experienced a decline in cash flow, leading to the cancellation of millions of individual and family policies nationwide. 

Higher Enrollment in Private Health Insurance

While many people have lost their insurance benefits, it does not necessarily mean they qualify for special enrollment in ACA-based health insurance plans. Open enrollment is typically between early November and mid-December. It means that many individuals and families must wait until the end of 2021 to apply for insurance.

Some people may qualify for Medicaid until they can receive their health benefits at work once again. Others are taking advantage of private health insurance options since they can enroll any time throughout the year. Private insurance offers many of the same benefits as ACA insurance, with opportunities to save money on monthly premiums and healthcare costs.

Your Insurance Coverage May Not Have Changed

Surprisingly for many Americans, very little has changed in their coverage. For example, numerous studies have shown that, overall, insurance rates have remained steady throughout the pandemic. Any changes in coverage or premiums have not been related to instances of COVID-19 or subsequent treatment. 

So, even individuals who have been treated for Coronavirus should not see substantial increases in their premiums. Naturally, this is on a per individual basis, depending on circumstances and other medical factors.

Contact Insurance Enterprise for Premier Health Insurance

If you have questions about individual, family, or group health insurance and need health insurance quotes, contact Insurance Enterprise at 888-350-6605. Speak to a licensed agent and find out more about how you can get an affordable health insurance plan.