Financial Gains During COVID-19
Health insurers saw a 52% increase in profits during the pandemic's first year, totaling $41.4 billion, as elective procedures were canceled and fewer patients sought care.
and several nonprofit insurers in reported significant financial improvements, with the former doubling its second-quarter profit in 2020.
Post-Pandemic Premium Increases and Cost Trends
Despite initial modest premium increases post-pandemic, insurers now face rising healthcare costs, including expensive new medications, leading to an average 7.8% premium increase for group health plans this year.
Experts indicate the substantial pandemic profits offered little cushion against current inflation-driven healthcare cost surges, with insurers having already distributed benefits during the pandemic.