The often persistent health effects of COVID-19 are expected to have enormous costs. With as many as one out of three COVID-19 sufferers struggling with lingering symptoms even after the infection has subsided, Brown researchers analyzed health insurance claims from January 2019 to March 2022 to estimate just how much more COVID-19 cost in the year following diagnosis. They found billions of dollars.
The study, published in the American Journal of Managed Care, was led by Laura Chambers, assistant professor of the practice of epidemiology in the Brown University School of Public Health. With collaborators from Blue Cross & Blue Shield of Rhode Island (BCBSRI), the team investigated the health care spending patterns of BCBSRI members who were diagnosed with COVID-19. The study compared their spending to matched controls in the 12 months before and after diagnosis.
The findings were striking, indicating increased health care spending following COVID-19 diagnosis for both commercial and Medicare Advantage members. This excess cost was most pronounced immediately after diagnosis, but some additional spending persisted throughout the 12-month period. Outpatient, professional and prescription services were identified as major contributors to the excess spending.
On average, “health care spend” for individuals with COVID-19 increased approximately $41.61 more per month in the year following infection than for similar people without COVID-19. For older adults, the increase was $97.30 per month or $1,167.60 over the course of a year. The additional spending for commercial members of BCBSRI was greatest for outpatient and professional services, while Medicare Advantage members saw the most excess spending across outpatient, professional and prescription services.
The implications at the population level are substantial. Considering that around 34% of U.S. adults aged 18 to 64 were estimated to have had symptomatic COVID-19 by October 2022, the excess health care spending for these cases over 12 months could surpass $34 billion. Similarly, the 27% of adults aged 65 or older estimated to have had symptomatic COVID-19 during this period may have resulted in an additional $17 billion in health care expenses over 12 months. That’s potentially $51 billion in overall excess health care spending due to COVID-19.
Chambers’ study underscores the need for measures that not only address the immediate health care needs associated with COVID-19, but also consider the long-term effects of infection such as breathing difficulties, chest pain, fatigue and thrombotic complications. The authors also stress the importance of vaccination and preventive measures to minimize the risk of infection, severe illness and persistent symptoms, especially considering uncertainties about future strains.
