Beware of the Hidden Effects of Reduced 2020 Healthcare Costs: Bold Solutions Can Help Address These Challenges
Nov 12
BY CYNTHIA MCGRATH | NOVEMBER 12, 2020Amidst the pain, anxiety, and budget hits caused by the coronavirus, one bright spot has been reduced healthcare spending. Medical claims dropped precipitously as provider groups closed or limited their practices to ensure capacity for COVID-19 patients. Most elective procedures were canceled or postponed. Patients also stayed away to avoid potential exposure. After a drastic reduction of costs in March, April, and May, claims costs returned to normal levels in June and July, as reported at the New England Employee Benefit Council’s October 15 Healthcare Cost Control Solutions Program.According to the State’s Division of Insurance, in Massachusetts:For August and September, payments came in 5%-20% higher than normal due to catch up demand as well as the increased costs associated with deferred care.For October and beyond, the agency projects 10% h...
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