What Causes Health Insurance Hikes

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Just as the popular statement that states “health is wealth”, the same can be thought of that your health can consume your wealth. This is not really surprising with regards to the health care institutions as a percent rise can be observed in a yearly basis. As a result, compared to the health care insurance cost in early 2000’s, it definitely is spiking.

As reported by the Wall Street Journal, insurance companies aiding health care services are expecting that a 25% to 116% rise on premium pays will start to roll out this coming 2014 for every individual who decides to enroll themselves for such policy. The reason that everyone is pointing out is all about the Obamacare pursuit. Although part of it is true regarding the requirements for Obamacare, the other part is really nothing to be lineated with it.

Another actor that we keep on blaming for such event are the physicians. We tend to argue them for things such as overpricing when in fact,  they themselves have no control over the price that your insurance has to cover. Physicians and the insurance company have their own revenues relating to the cost of your medication and as such, whatever is required in the paper must then be settled.

There are numerous causes as to why health care insurance is always at an inflation rate. The fact that goods and services alike don’t seem to be getting any cheaper explains why medical needs isn’t backing out either. It continues to escalate slowly during the past years for the reason that provisions bundled in such policies needs to be updated to curb the rising health care cost due to the improvements of hospital facilities and their efficiency to provide care.

With that being said, we have gathered a few list on what causes these hikes in health insurance costs. Pay attention closely and see how these really makes sense.

  • Technology.

This is really what keeps everything expensive despite the fact that it changes the phase of hospitalization into a newer and better one. Such quality, which can be related to this, is the fact that most diseases are opted to be treated via the most recent technological innovations that makes the detection and cure easier. As such, technology is regarded as the most important driver of healthcare spending increase. According to a recent technical review convened to advise CMS on future healthcare, about half of real health expenditure growth is attributable to medical technology. So if we expect to improve our quality of living, we must also expect to spend much.

  • Administrative expenses and hospital costs.

This is also an area of concern as to why healthcare costs increases. Physicians have practiced to become someone that cures the patient. And for most of the times, having the burden on managing administrative regulations and hospital healthcare expenditures is somewhat really out of their league. As a result, most of them tend to fall under the wings of larger hospitals to avoid these instead of running their own. According to a survey of more than 13,500 medical practitioners, 77% are pessimistic about the future of medicine.

  • Lifestyle leading to chromic conditions.

Most of us haven’t really thought of the after effects of the way we live our lives today. As a result, more and more individuals are experiencing different medical conditions. For most of the time, the common and costly medical conditions are the chronic ones, which are caused by our tobacco use, insufficient physical activity, poor eating habits, and excessive alcohol consumption. For most of the time, these are totally preventable and are highly under our control. But because of our lifestyle, we tend to think of the future and just do what we wanted to do that eventually results in increasing medical bills.

  • Vulnerability of health sector to global risks

The truth is, every single viral spread around the globe becomes an alarm not just for health institutions to recalibrate their prevention scheme, but also for health insurance institutions which are volatile to global health risks. Indeed, if these risks upscale in contrast to the public’s reception of these risks, these insurance companies tend to ascertain themselves in a safer belt by elevating the costs of insurance policies as well.

And these are the causes of such health insurance hikes. But amidst the uncertainties that the future of insurance industry is posing, there still is a certain trend to acknowledge – that insurance hikes can only exist to ensure the greater security of those who can keep up with their demands. Sure it takes a reasonable inch from our wallets, but it’s also the same inch that’s gonna save us when the risks take their places.