What will Health insurance look like after coronavirus, and what are the key future trends? Jonas Hjortshøj, CCO of Liva Healthcare takes a look.
Covid-19 has had a far-reaching impact on the health insurance industry. To keep up with incredible demand and pressures on their services, many health insurers are set to increase premiums. In the UK, most private health insurers have also raised the amount of money given back to policyholders if they must stay in an NHS hospital.
Most of the recent changes have been reactionary to keep the industry afloat but now health insurers are looking ahead to how they will need to adapt in a post-coronavirus landscape.
Boosted services are set to stay
Due to current pressures, health insurers, like public bodies, have been unable to provide access to the same care in some areas as quickly as before.
Yet, many insurers have boosted other services. They’ve stepped up digital services such as online mental health support, allowing patients to be referred to more facilities. In response to social distancing, most have increased access to medical expertise by phone, video, online and apps.
This virtual revolution isn’t going to lessen any time soon. Now customers have been forced to use digital services, and the benefits have been revealed, it’s likely they will now expect online or virtual options in the future, instead of visiting healthcare practitioners in person.
Prevention is key
It’s tragic to see that people with chronic health conditions, particularly those with diabetes, are disproportionally affected by coronavirus. Yet, there is hope for the future. Research indicates that Type 2 diabetes can be prevented and treated effectively with healthy lifestyle change.
To protect the health of policyholders, it is vital they are given the right tools and support to lead a healthier life. Over the course of six months, our digital health coaching prevention solution results in an average weight loss of 6kgs (12.5lbs). This weight loss is also sustained over more than 20 months, delivering long term health benefits.
Diabetes – the fightback begins
80% of people on the programme living with prediabetes sustained a reduced HbA1c level at 12 months and 47% of people on the programme living with prediabetes normalized their long-term blood sugar below the threshold of prediabetes at 12 months.
By offering patients this innovative and personalised treatment, we can change lives and reduce costs. If we take Type 2 diabetes for example, patients with no complications will have an average societal cost of £5,320 per year. This cost includes losses in productivity, primary and secondary healthcare services, drug costs, and nursing costs.
By rolling-out this effective treatment, a Type 2 diabetes diagnosis can be reversed before complications arise. As a result, up to £27,660 per patient per year could be saved. Saving costs and benefiting patients will become even more crucial in the years to come. As the range of services increase, they must prove their value and return on investment.
The future is here
In the UK, the health and wellness industry was already worth €24.1 billion in 2019 and was predicted to increase to €25.6 billion in 2020. This was before the impact of Covid-19 was known.
Now, proactive healthcare will be on the minds of more and more people. The health insurance industry is ideally placed to direct people to evidence-based programmes that deliver real, long-term results.
With the near instant rise of remote healthcare – the health insurance industry’s core offering has changed. The new normal of virtual healthcare will deliver better outcomes for patients, leading to healthier people with lower premiums.
The time to adopt or continue to offer innovative solutions is now. Who knows how far the industry can go in its embracing of change? Only time will tell.
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