Health Insurance Articles
Why Some Analysts Think Health Insurance Rates Are Rising
2011-11-13
Recent years have shown health insurance rates sharply increasing, both for employer-sponsored health care and for family plans through private insurers. Since 2001, the cost for family health insurance has almost doubled, but wages have only increased by 34 percent over the same period of time. A new study from the Kaiser Family Foundation shows that despite passage of the new health bill, even employer-sponsored benefits have increased by 9 percent between 2010 and 2011, putting them over $15,000 annually in premiums for a family. Analysts across the country are now trying to determine why health care costs are rising, and if they will continue to do so.
Some analysts believe it is the recent economic slowdown, combined with a greater use of health care services, that is creating a legacy of higher rates. Recent years saw a spike in unemployment along with a global economic crisis, and health services of all types were used at a greater rate by employees and private citizens. As a result, the health care industry began placing larger premiums on their services, and the overall cost of health care rose. Now, service use is declining across the board as those insured do their best to save their health care dollars for essential procedures, but health care companies have not yet caught up with this slacking demand and health costs are still rising.
Another potential culprit for rising health insurance rates is the new health bill forwarded by the Obama administration. The alleged aim of the bill is to create an option for those who cannot afford private health insurance to be covered by a form of government insurance. This insurance claims to be basic and functional, and not offer the same access to specialists and specialized treatment as employer-sponsored or private options. However, the bill also mandates greater government control over the way private health care is run as well as requiring companies to maintain a certain standard of care. While this should improve overall service, many companies are concerned about the effects of this interference on their bottom line if they are forced to alter the way they do business or catch up with government regulations, and some are raising their rates preemptively in an attempt to stave off any profit loss from the new health bill.
General predictions hold that health insurance rates will continue to rise in the foreseeable future, partly because of the recent increase in use, and partly because of the new legislation which has been introduced by the Obama administration. For insurance customers and families, finding a substantial coverage policy with a reputable company is more important than ever before - insurance rates are set to keep increasing.
