Daniel Stewart

What Is the True Cost of COVID Hospitalization?

With news stories about COVID vaccination rates and hospitalization rates dominating the headlines, stories about the true cost of COVID hospitalization have flown under the radar. However, for the millions of people who have already been hospitalized with COVID or COVID-related complications, the high cost of treatment is a reality. What is the actual cost of COVID hospitalization?

Factors That Influence the Cost of Hospitalization

U.S. Representative Pramila Jayapal has estimated that the average cost of hospitalization for COVID is slightly more than $17,000. However, it may not be reasonable to take an average because of the wide range of factors that can influence the cost. For example, a person's age and geographic location can factor into the cost. The length of the hospitalization and the severity of the illness are also major factors to consider. For example, a patient on a ventilator for weeks in the ICU will pay tens of thousands of dollars more than a patient who is out of the hospital in a few days.

It is also important to look at out-of-pocket costs. The availability of health insurance, Medicaid or Medicare can dramatically reduce out-of-pocket costs. If an individual has a well-funded Health Savings Account, the financial impact of hospitalization for COVID or for any other reason can be dramatically reduced. While one person may pay $10,000 in out-of-pocket expenses, someone else may easily pay more than $100,000.

Are You Prepared to Pay Your Deductible?

The unfortunate reality is that nobody is immune to COVID-19. Even those who have a vaccine and who were previously infected could potentially fall seriously ill. With this in mind, it is important to assess your financial situation today. If you caught COVID and required hospitalization, could you afford to pay your health insurance plan's high deductible? By contributing more to your health savings account and making a few other changes soon, you can be better prepared for what the future holds.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years' experience in business finance. You can find his thoughts at HSA investment advice blog.