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Insurers Cigna, Humana Waive Out-Of-Pocket Costs For Coronavirus Patients

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Insurers Cigna, Humana Waive Out-Of-Pocket Costs For Coronavirus Patients

Health insurance companies Cigna Corp. (NYSE: CI) and Humana Inc. (NYSE: HUM) will waive all out-of-pocket expenses for novel coronavirus (COVID-19) patients, President Donald Trump announced in a press conference on Sunday.

What Happened

The expenses, such as hospitalizations and ambulance costs, that the patients would be otherwise required to co-pay for, would now be covered entirely by the companies for any individual who is insured directly with them or is on an employer plan, as reported by CNBC.

The plan would apply to all medical costs related to COVID-19, including medicine or vaccines approved by the Food and Drugs Administration, as and when they become available, CNBC noted based on statements from the two companies.

Costs for both in-network and out-of-network services would be covered, the companies said.

Why It Matters

In a first, CVS Health Corporation's (NYSE: CVS) Aetna announced a similar policy last week.

The number of coronavirus cases in the United States has risen to 142,106 at press time, making it the most-infected country in the world.
With the COVID-19 spread showing no immediate signs of slowing down, it is currently difficult for companies to estimate exactly how much the pandemic will end up costing them.

A report by Covered California last week suggested that insurance premiums could rise up to 40% in 2021 as companies look to recover costs from the pandemic.

Price Action

Cigna's stock closed 4.87% lower at $161.29 per share on Friday and traded further lower at $160.98 per share in the after-hours session.

Humana's shares closed 2.43% lower at $297.07 and traded another 0.36% lower at $296.00 in the after-hours session.

 

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