The US is one of the highest spending countries when it comes to healthcare costs. These cost have steadily grown over time, most notably in the last decade. The worst part about everything is the fact that while these costs keeping growing, the quality in medical treatment is not growing along those same lines. Providers use leverage in the market to determine fees and that causes inflation that results in higher fees and premiums. There are 7 major factors that contribute to driving up health insurance premiums.
The first is new medical technology. This is a natural cause of rising premiums as there will always be new technologies being developed. The positive side of this is that with new technologies comes better medical care.
The second factor that drives up insurance costs is inflation due to providers.
The third reason is the low usage of primary care physicians. When people need specialist doctors their primary care physician will act as a gatekeeper to those specialists, thus lowering the cost.
That leads us to reason number 4 which is high spending on specialists.
The fifth reason is the aging population. We all know that with age comes increased health problems. It is important for the aging population to get their health care as cost effective as possible.
The sixth reason is one that we have little control over and that is the rise in chronic illnesses. The very last reason is that of medical frauds that are committed. The reasons stated above were discovered through Carrington College. The information tells us that there is a lot that we cannot control when it comes to some things that contribute to the rising costs like new technologies constantly developing and aging population. There are however things that we can control like increasing the number of primary care physicians in order to decrease the cost for specialists. Lowering the cost of health insurance starts with doing a good job with what we can control. To get a better understanding of the factors stated and how they directly affect your premiums, please view the infographic below:
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