From SHRM:
The coronavirus may end up lowering health care costs for self-insured employers this year, as medical treatment for noninfected patients declines during the pandemic, according to new reports. Health care actuaries who in April predicted a spike in group health plan costs now have reservations about those earlier forecasts, and they are uncertain about the outlook for plan premiums in 2021. ...
COVID-19 could reduce employer health care costs for self-insured employers by as much as 4 percent in 2020, according to a May study ... that analyzed estimates of infection levels in the U.S. In April, a similar study conducted ... projected that costs for large employers could rise by as much as 7 percent due to COVID-19 testing and treatment, echoing forecasts by other consultancies and health industry groups.
In a self-funded (or self-insured) group health plan, the employer assumes the financial risk of paying for employees' health care claims under the cost-sharing terms of the plan. ...
Looking ahead to 2021, 'additional financial risks come from the potential adverse consequences from missed wellness visits, immunizations and services that otherwise would have been delivered,' [one expert] said. 'It is not unreasonable to assume that we'll see an increase in case complexity due to these missed services, and though the extent is debatable, it will likely be dependent on how long people continue to avoid care.' ...
