Health Insurance Articles

West Virginians Experience Increase In Health Insurance Costs

2009-10-01

Workers in West Virginia have been hit hard by the current recession, and according to Families USA, a health advocacy group, the cost of health care hasn't been helping. A report released by the organization shows a rapid increase in health insurance costs when compared to the median income for West Virginians. This is a bad combination when added to rising deductibles and fewer employers offering health insurance plans. The equation has left approximately a quarter of West Virginians uninsured. To add insult to injury, the cost of heath insurance coverage is likely to continue to rise unless proposed reform bills take effect in a way that limit premiums from rising or lower direct costs from hospitals, doctors and other health care providers.

Part of the reason for the increases in health care rates may be that West Virginia contains high-risk industries, particularly coal mining companies, which have higher costs (and therefore larger increases) for health insurance coverage. The higher cost-per-plan in these industries unfortunately drives up the averages for the state. The rest of the increases are likely due to the faltering economy, which has shown slight signs of improvement but is still quite a ways away from stability. Health care providers are just as affected as any other company by the recession and are looking for ways to constantly cut back. With talk of reform hanging over their heads, many are looking for possible ways to stay in the black, also leading to higher premiums and lower coverage.

Higher rates lead to more plan cancellations, which contribute to the high number of uninsured workers in West Virginia. Less employers offer health care coverage, as it's a major cost that can be cut during troubled times. Workers should not assume that health care plans are safe or won't change simply because they currently receive benefits from their employer. Unless it's in a contract, health plans can still change very quickly.

West Virginia workers may want to re-evaluate the health care plans that they have, especially if they've seen their health care coverage change recently. They may consider contacting an insurance representative to discuss locking in current rates, or getting several quotes from other health insurance coverage companies that may be able to lower his or her costs. One thing that workers will not want to do is depend on any form of legislation from the Federal government to fix the problem quickly. Any national health care plan will take at least a year to get off the ground and have a direct effect on individual health care plans across the country. Having West Virginia health insurance coverage now is imperative to maintaining a secure state of mind in case of emergency.