Health Insurance

Why Health Insurance Premiums are Increasing

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If you pay any attention to the news, you know that health insurance premiums have been on the rise in recent years, which can be frustrating if you’re looking at paying more each month than ever before, but don’t understand why it’s happening. Don’t worry, this article will provide an explanation of why your health insurance premium increased and what you can do about it so it doesn’t happen again next year.

 

Health Care Costs

Health care is one of those issues that has always been polarizing, but it has become even more so in recent years. One of the main reasons for health insurance premium increases is increasing health care costs. So what is causing these rising costs? Two major things: technology and population growth. The cost of medical devices and drugs is going up because technology keeps improving, meaning you get better treatments for less money. That’s good for patients but bad for insurance companies and employers who cover part or all of their employees’ health insurance premiums. And as more people are covered under a plan, it drives costs up, too—especially if they’re having babies!

 

Government Intervention

In recent years, several factors have contributed to rising health insurance premiums. Several states have enacted laws that limit how much insurers can increase premiums and insurers must abide by those rules when writing plans for their state. The 2010 Affordable Care Act mandates that health insurers spend at least 80% of premium dollars on medical claims or improvements to their infrastructure. The remaining 20% can be put towards administrative costs, advertising, and profit margins (which doesn’t bode well for lower premiums). Additional regulations also drive up costs; one study found that purchasing a plan with essential benefits raises premium costs by 8%.

 

The Shifting Landscape of Healthcare in America Health Insurance

Health insurance premiums have gone up by double digits for several years in a row, and 2016 is looking to be no different. The price of healthcare has risen substantially over time, thanks to factors like government regulation and rising costs across all industries. Take a look at how much health insurance premiums have risen over the last 30 years

 

How Changes Benefit Consumers Health Insurance

Whether you work for a large employer or purchase your own health insurance. You’ve probably noticed an increase in your premiums over recent years. It is true that premiums for individual plans have increased by an average of 42% between 2010 and 2013 and. There will be more increases in 2015. This sounds concerning but even with these increases, most employers still offer. Affordable coverage options while others offer no-cost insurance options. Further, it’s important to understand why premiums increased to begin with; they did so because changes to health care policy laws prompted a shift in consumer buying patterns. Which meant that consumers spent more money on prescription drugs, doctor visits and other health services.

 

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