Health Insurance Articles
3 Factors That Might Contribute To Rising Health Insurance Rates
2011-11-09
Did you know that statistics from the Centers for Disease Control and Prevention (CDC) show that more than 46 million people in America are currently without a health policy? Did you know that the majority of those without health insurance cite the overwhelming expense of health insurance rates as the reason?
According to a study done by the Kaiser Family Foundation in 2011, the average family of four with an employer sponsored health policy will pay $15,073 per year in premiums. If the average family income for a family of four is around $30,000 to $40,000 per year, then we are spending around half of our paychecks on health insurance already and health insurance rates are still rising. Why? What factors are contributing to this increase and what can we do to stop it?
The Uninsured
Believe it or not, one of the biggest reasons for the increase in health insurance rates is the uninsured and underinsured. In the United States, anyone who needs health care is entitled to at least minimal care regardless of whether they have a health policy or can pay the bill. Hospitals are simply not allowed to turn down anyone for basic care, which leads to billions of dollars in resources being used with nowhere near enough income. To help combat the problem, medical facilities raise the rates for those who can afford to pay, which in turn leads to higher health insurance rates.
Overuse of Medical Care
Due to health insurance and laws requiring that everyone receives basic care, many people seem to look at some health care services as "free". But every procedure and every treatment costs money. But often enough, unnecessary tests and procedures are ordered just to be on the safe side.
Cost of Care
Ever wonder how much the various machines in a doctor's office or hospital cost? How about the cost of the research which went into the medications that you take? Technology and research are extremely expensive and the cost trickles down to your health policy affecting your health insurance rates.
Many experts believe that the best way to put a cap on health insurance rates is to give average consumers more say in their own health care. The reason? Most of us coupon hunt, search for sales and do without "luxury" items in a bid to save money every single day, so the experts believe that the average consumer, if made aware of the real cost of each medical procedure, will search out the lowest cost or do without, which will drive health insurance rates and the cost of a health policy down to something much more affordable. What do you think?
