Health Insurance Companies During Recession

Employment sponsored health insurance and start to change.

Health insurance companies during recession. Economy is primed for a recession in 2020 or 2021 so says 82 of the investment chiefs at the world s largest insurance companies. Even as the covid 19 pandemic ails global and national economies the health insurance industry is reporting higher than expected first quarter profits reuters reports. Photo courtesy of pexels. The economic downturn of 2008 2009 provides some of the best examples of what some of the specific impacts would look like in the field of healthcare.

Life insurance remains a foundation for transferring wealth to the next generation. All groups of americans were. Impact of a recession on healthcare providers. Fortunately insurance companies can take steps now to preserve their strengths shore up weaknesses and perform more effectively during periods of consumer and economic uncertainty.

The companies that fare best during a recession share several behaviors say researchers martin reeves kevin whitaker and christian ketels in harvard business review. Good growth from 2004 2006 with a slight dip in 2007 before the crash of 2008 and the subsequent dip in 2011. Loss of employment and declining incomes meant that five million americans lost employment based health insurance during the recent economic recession 2007 09. Even though this list is far from perfect it does provide healthcare providers a general guideline for what to expect during a recession.

Experts say the health sector isn t completely shielded during a recession but it does respond differently than most other areas. Upon further review we excluded an additional 34 articles that examined health services health insurance or internet searches and those that did not specifically examine the recession either by comparing recessionary periods with earlier or later periods or by examining economic indicators primarily during the recession 2007 2009. The rise in profits is attributed to the decline of wellness and elective procedures delayed by safe at home orders a financial saving for insurance companies that has outweighed the costs of testing and treating of more. But during recessions life insurance companies could be under a threat of extinction as consumers may cut back on or downsize their plans and coverages especially because life insurance might not be seen as a necessity to consumers.