Covid-19 Testing Could Cost Insurers Billions of Dollars Yearly

Health insurers could have to spend as much as $25 billion per year for Covid-19 diagnostic tests and up to $19 billion per year for antibody tests, the industry’s trade association said Wednesday.

Diagnostic testing likely will cost $6 billion to $25 billion annually, and antibody testing could cost $5 billion to $19 billion annually, according to the study conducted for America’s Health Insurance Plans by Wakely Consulting Group LLC.

The total costs of testing will be less than the combination of costs for diagnostic and antibody tests due to uncertainty over how testing strategies will be deployed, including what ...