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Coronavirus Boosts Insurers as Patients Shun Hospitals: Analysts

March 17, 2020, 6:41 PM

Health insurers may benefit initially from reduced use of health-care services in the event of a recession, managed care market analysts say.

The impact of the coronavirus pandemic on first quarter earnings “could actually be in the positive direction for managed care because the reduction of broad health care could more than offset any direct spike in costs related to the coronavirus,” Michael Newshel, health care facilities and managed care analyst for broker Evercore lSI, said in an interview.

The long-term impact on health insurers remains to be seen as it becomes clearer how many people will need extensive treatment. ...