Is it of any curiosity to healthcare providers that automobile insurance companies have started rebating or discounting premiums based upon the fact that we are all driving less and, as a result, their claims processing for accidents has dropped dramatically?
Well, if I’m not mistaken, it would appear that, with the stoppage of elective procedures and the dramatic reduction in outpatient visits and inpatient admissions, most commercial health insurance companies, who are continuing to receive premium payments from individuals and employers, must be recording record profits; the likes of which might rival those of Amazon and Jeff Bezos.
It will be interesting to see what the earnings reports show for the first quarter of 2020. I do not believe any have been released as yet. And, while you could argue that insurance companies may be hit with “pent up demand” claim spikes when those elective procedures finally get rescheduled, they are certainly salting away some serious cash right now.
Where are the rebates? Where are the experience-based premium reductions? We’ll never see them.