IOBE: Slight increase in the cost of hospital allowances of insurance programs in 2020

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The new results for the indicators calculated by the Foundation for Economic and Industrial Research (IOBE) regarding the monitoring of the cost of compensations paid at the market level by the health insurance companies for the long-term individual hospital programs in the period 2011-2020 were published today.

Due to the pandemic, there is a decrease in the frequency of damage in the entire Greek insurance market of these programs in 2020, while the average cost of damage increases. As a result, the Single Health Index (EDI), which takes into account the evolution of the age composition of the portfolio of long-term hospital coverage in the Greek market, shows an increase of 1.4% in the same year.

IOBE has undertaken the calculation of indicators that monitor the changes in the cost of hospital compensation faced by insurance companies as a whole. The availability of these indicators contributes to the understanding of the evolution and changes in health costs paid by insurance companies in Greece in favor of their policyholders.

For the purposes of the study, data were collected from 14 insurance companies, which cover almost the entire market of hospital insurance programs with guaranteed renewability. The sample of data includes 768 thousand records of compensation in total for the period 2011-2020.

The analysis of the data shows on the one hand that the incidence of damage to the entire portfolio decreased to 15.8% in 2020 from 17.4% in 2019, as a result of the tendency to avoid scheduled hospitalizations (cancellations and transfers) due to the pandemic. On the other hand, the average cost of injury increased to 4.1 thousand euros in 2020, from 3.7 thousand euros in 2019 and 2.9 thousand euros in 2011, as the treatment seems to have focused on more serious, non-receptive deferrals, incidents during the pandemic.

Therefore, the impact of the pandemic seems to have significantly reduced the strong growth trend of the Single Health Index (SAD) in previous years. In particular, the EHR, including the effect of age, increased in 2020 by 1.4%, while in total since 2011 the EHR records an increase of 77.9%. Subtracting the effect of age, the EDY showed an annual decrease of 3.0% in 2020, from a 6.0% increase in 2019.

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Source From: Capital

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