Why Are Health Insurance Premiums Rising So Fast??
- Thread starter edweather
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probably because of the dude you voted for.... I only #ssume cause I got a 50 50 shot of being correct.... obamacare caused it
and to pay us rich agents 
- 11,996
A number of factors:
Mandates, NY has required benefits.
NY is also guaranteed issue.
The cost of healthcare itself is going up, pharmaceuticals are likely one of the biggest problems. A drug that was $40 for a 30 day supply a few years ago is over twice that now. Most consumers don't care or even think about it.
People are less healthy and keep getting fatter, so that increases the overall cost.
Mandates, NY has required benefits.
NY is also guaranteed issue.
The cost of healthcare itself is going up, pharmaceuticals are likely one of the biggest problems. A drug that was $40 for a 30 day supply a few years ago is over twice that now. Most consumers don't care or even think about it.
People are less healthy and keep getting fatter, so that increases the overall cost.
Drug shortages such as with cancer meds, are part of it as well. IT just makes the prices higher and higher due to these shortages.
GI definitely doesn't help considering people can (unless Josh can point out I'm wrong) apply for HI when sick, use it, then drop it. So there isn't even a chance for investment of the money.
Insurance companies make money by two major things (the rest are minor, though still important): underwriting to prevent losses, and investing the money. When interest rates are low, underwriting tightens up. Well now underwriting is thrown out and it makes it harder to recoup those costs.
GI definitely doesn't help considering people can (unless Josh can point out I'm wrong) apply for HI when sick, use it, then drop it. So there isn't even a chance for investment of the money.
Insurance companies make money by two major things (the rest are minor, though still important): underwriting to prevent losses, and investing the money. When interest rates are low, underwriting tightens up. Well now underwriting is thrown out and it makes it harder to recoup those costs.
- 8,448
Believe it or not, the premium increases in 2012 are the lowest seen in years according to this CNN Money article:
Health insurance premiums climb 4% in 2012 - Sep. 11, 2012
Ave 2012 increase = 4%
Ave 2011 increase = 9%
I remember the days when I easily sold American Medical Security (now part of UHC) individual policies by letting the prospect know that their average annual increase was "only" 17%.
Our in-house telemarketers were generating so many health insurance leads before 2010 that we would cherry-pick the good ones (family, or over age 50) and put the rest at the bottom of the stack.
-AC
That's ridiculous. I guess I'm going on medicaid...
- 8,448
NCAgent, recent studies are demonstrating that Medicaid patients don't receive the best of care. Also, more doctors are refusing to accept Medicaid patients.
Here's a Forbes article that summarizes the study.
'Health Affairs' Study: One-Third of Doctors Won't Accept New Medicaid Patients - Forbes
With Medicaid expansion about to ramp up dramtically for 2014, expect quality of care and acceptance to decrease even further.
If at all possible, you should avoid Medicaid, NCAgent. You could be putting your life in jeapordy if a major illness strikes.
-AC
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