Healthcare prices have risen steeply in the last few years in America and they are projected to rise even more in the next few years. Americans have increasingly expressed dissatisfaction over the health insurance costs. The increased prices have probably been one of the most important reasons for their dislike towards the Obama administration.
A primary cause for the steep rise in health insurance prices are the medical costs which are growing and growing every year. Statistics show that the rate of growth in medical costs have slowed down, but not enough to fall behind inflation.
Health insurance companies pay for medical bills and other medical expenses on behalf of the patient. The patient might not be fully aware of any hidden charges or any unwanted expense that they be charged with. Also, patients don’t have the means by which they can quickly learn about different treatment options and their costs. Sure, the internet is filled with information, but it takes time to compare every option. Failure to make informed decisions about health insurances and awareness are two important reasons why health insurance costs are increasing.
The cost of medicines and drugs are increasing gradually and this contributes to the increasing health insurance costs. It is possible that 40% of the medical costs will include pharmaceuticals only.
The worrying numbers
Recent reports have shown that health care for families are likely to increase by 3.4% from last year. The average costs could go up to $18, 142.
According to the U.S. Labor department, in one month, medical costs are rising by 0.5-1% and it is a worrying matter for Americans.
Workers in America with individual health insurances have plenty of reason to worry because they are already paying deductibles. The deductibles could go way over $1000 in some cases. That is an increase of 31% since 2011.
Obamacare was introduced to provide health benefits to all Americans. It did, but at a heavy price. When it was first introduced, a lot of insurance companies were not aware of their new customers. They did not have proper details or information about their new customers and this confused them. Insurance companies were at a loss because many people did not have insurance plans.
A report in 2015 showed that insurance companies in America lost $2.7 billion due to Obamacare. The insurance companies were paying for claims than they had expected.