Healthcare Blog

Posts tagged "insurance premium"

Healthcare Cost Keeps Rising

Healthcare cost continues to rise and the Affordable Care Act (ACA) isn’t exactly affordable at all. The inflation of healthcare is rising faster than the American economies natural inflation rate. What is making healthcare rise faster than everything else? There are many contributing factors and one of the major ones is supply and demand. The demand for healthcare didn’t happen organically, it happened over night. When the ACA was passed the entire United States population had demand, but the supply stayed the same. Sadly the healthcare provider market hasn’t expanded much in response to the demand.

There are some new health insurance carriers that are trying to hedge their way into the market, but the successful ones get bought out by the larger more established companies. The inflation for healthcare is not just attributed to supply and demand though, it is also the result of political decisions and increased regulations as well as the cost of prescriptions, medical devices, and hospital care, according to an article on Forbes. Some of these were already an issue to rising healthcare costs before the ACA was passed, so why did congress put a 2.3% tax on medical devices under the ACA’s law? Doesn’t make much sense when you are trying to keep healthcare cost “affordable.”

Here is a graph that we pulled from Forbes comparing the natural rate of inflation against the healthcare rate of inflation. Will healthcare increases outrun our incomes if more competition doesn’t halt the monopolized lack of supply for the ever increasing demand? What are your thoughts on healthcare costs?

healthcare cost
Read the full Forbes article HERE

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Posted by Lauren Yeager in All Posts, Health Insurance, In The News and tagged , , , ,

Opposing View for Insurance Premium Rates

USA TodayIt’s not often that an article written asks itself to be pitted against somebody with an opposing view, but that is exactly what USA Today did when they asked The Galen Institute to write their view on next years insurance premium rates. USA Today’s camp states that premium increase will be at a minimum and that for Obamacare critics there is never any good news, and that critics think “Obamacare is a ready to-implode disaster.” The article goes on to quote several rate requests submitted for 2016, and says that any large rate hikes are due to miscalculated rates from 2015 and the need to “regroup.” Read the full USA Today article HERE

The Galen Institute writes their opposing view with early quotes of, “President Obama is jawboning regulators to Galenlower rates, but that can only go so far when plans face multi-million dollar gaps between premium income and claims payments” and ” To offset the cost of the Affordable Care Act’s many new mandated benefits, the most popularly priced plans have ultra-limited networks plus high out-of-pocket costs and deductibles” This goes to show that things are not always as they seem. USA Today is quoting on smoke and mirrors rather than what is behind the facade.

You can quote premium rate increases, but you have to look at what those rate increases are covering. A rate increase today of 6% is like a 10% rate increase pre-ACA. The rates might not look like they are increasing that much, but when you look at the broad picture of insurance plans and premiums before ACA vs. current pricing, the increase is much larger than even Grace Marie Turner of the Galen Institute wrote about. Read The Galen Institute’s opposing view HERE

What were your healthcare premium costs like before the ACA compared to what they are now? What is the percentage of your increase over the years?

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Posted by Lauren Yeager in All Posts, Health Insurance, In The News and tagged , , , , ,