COVID-19 and self-funded plans: understanding the financial impact

Benefits professionals are busy trying to keep numerous balls in the air now as you look to help ensure some stability for their people and organization during chaos of the COVID-19 pandemic. Here’s one ball their benefits advisor can ensure doesn’t fall out of place in protecting everyone over the long term: Assessing the potential cost impacts of the SARS-CoV-2 virus on their self-funded health plan, and taking steps to protect its financial viability.

Trying to project the financial impact of the coronavirus on a health plan is no small task given the number of variables in play, many of which are not under a plan sponsor’s control. If you’re in a densely populated region, for example, you could see a worrisome rise in infected plan members. The extent and duration of the spread and its impact on people would depend on how early and how long (if at all) a city or state authorities implement “shelter from home” policies.

Related: Coronavirus testing and care: self-funded health plan considerations