Will Coronavirus Harm Health Insurers?
At the end of 2019, coronavirus was barely on the radar for major health insurers, including UnitedHealth Group (NYSE: UNH), Anthem (NYSE: ANTM), CVS Health (NYSE: CVS), and Cigna (NYSE: CI). Transcripts of each company's earnings calls held between Jan. 15 and Feb. 5 fail to even mention the novel coronavirus or COVID-19, the illness it causes. As the outbreak spreads, government intervention could lead to significant costs for these and other health insurers.
Image source: Getty Images.
The Department of Health and Human Services (HHS) designated testing for coronavirus an "essential health benefit." This requires that the test be covered by insurers as well as Medicare and Medicaid. This tactic eliminates any out-of-pocket costs that may have deterred people from getting tested. Vice President Mike Pence said 1.5 million coronavirus test kits were being shipped to state and academic labs authorized to run the tests.
Source Fool.com
