Fairly limited impact as a result of large COVID-19 claims

  • We’ve had some big claims, but their frequency is low.

A wide-ranging impact on captive member enrollment:

  • Some members have had significant decreases, while others have experienced the opposite effect.
  • The total number of employees is down in aggregate, but by a fairly small number (less than 5%).

The coronavirus has caused many non-COVID-related procedures to be delayed or skipped.

  • As a result, captive members' costs are also going down on a dollar-for-dollar basis (one of the reasons why so many employers want to participate in a Pareto Health captive).
  • We expect some claims will disappear permanently and some will come back into the system.
  • The ones that come back into the system will not all come back at once.
  • We predict it will take 12-24 months for the system to absorb these claims.
  • Silver linings may have been hard to come by in 2020, but being in one of our captives was definitely one of them.
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