The COVID-19 pandemic has now passed the 18 months mark with no end in sight. It has already produced an incalculable amount of “costs” to the American people including as of today 38 million cases, 629,644 lives lost, many survivors with long term health effects, overworked and traumatized health care workers, lost businesses and jobs, and untold financial carnage to the healthcare industry. A Harvard study estimated the total financial losses due to the pandemic at $16 trillion[1]. Health losses made up over half of the total including $4.375 trillion from premature death; $2.572 trillion from long term health impairment; and $1.581 trillion from mental health impairment.

Early in the pandemic, when there was little known about how to fight this new virus, both public and private health insurance plans waived deductible and co-insurance payments to protect their beneficiaries from financial harm if they became infected with the virus. This practice also encouraged people to get tested and seek care as soon as possible to help monitor and control the pandemic.

Then at the beginning of this year a miracle arrived. During the first 5 months of 2021, free vaccines became available to all adolescents and adults aged 16 and above. Now, the vaccines have been approved for even younger adolescents aged 12 and above. And yet, the COVID-19 pandemic rages on due to the Delta variant and the 28 percent of the United States adult population who have remained unvaccinated. Although the benefits of the vaccines seem obvious, other philosophical and political viewpoints have been very difficult to change.

A recent study by the Kaiser Family Foundation estimated that approximately 113,000 preventable COVID-19 hospitalizations in June and July 2021 cost approximately $2.3 billion[2]. On an individual level, Fair Health quantified the average charges for an uninsured patient COVID-19 hospital stay at between $51,389 and $78,569 depending on the patient’s age; while average amounts reimbursed by private insurance for COVID-19 hospital stays ranged from approximately $17,000 to $24,000 depending on the patient’s age[3].

It is therefore not a surprise that Blue Cross Blue Shield of Michigan and Priority Health recently announced that they will be ending their programs for waiving patient out-of-pocket costs for COVID-19 treatment on October 1, 2021[4]. Private businesses that provide health insurance to their employees are also taking a hit, which is why we are also seeing a rise in monthly health insurance premiums for those that are choosing to remaining unvaccinated, similar to if you are considered a smoker. In our view, this action will be long overdue and it should send a strong message that the unvaccinated are not only risking their physical health, but also risking their financial health by continuing to shun the COVID-19 vaccines. We expect other major insurance payers to follow suit as this unnecessary second wave of COVID-19 continues unabated.

Our mission is to promote access to affordable, high-quality healthcare for everyone. Our belief is this mission can only be achieved when it comes with some basic responsibility of the individual to protect the health of not only themselves, but society overall.

[1] D. Cutler and L. Summers, JAMA, The COVID-19 Pandemic and the $16 Trillion Virus, October 12,2020

[2] K. Amin and C. Cox, KFF, Unvaccinated COVID-19 hospitalizations cost the U.S. health system billions of dollars, August 20, 2021

[3] M. Hackett, Modern Healthcare, Average cost of hospital care for COVID-19 ranges from $51,000 to $78,000, based on age, Nov. 5, 2020

[4] C. Elledge, Crain’s Detroit Business, Insurers to end no-fee programs for COVID-19 treatment on Oct. 1, August 18, 2021