Whether you own a small business or a small business consultant, here is a sentence 
we know all too well - the costs of health care are rising. But why? Here is a concise summary of eight key trends driving the rising costs of health insurance in America today.
1. The increase in medical costs
One of the primary root causes for the increase in health insurance costs are rising medical costs . The growth rate is slower than it was ten years ago, but the increase in medical costs exceed even inflation. There are several reasons for rising medical costs; we will cover the following main reasons.
2. The medical providers are rewarded for doing more (rather than being effective)
As we have written about previously, most insurers - including insurance -maladie - pay doctors, hospitals and other medical providers in a fee for service system that reimburses for each test, procedure or visit. In addition to this, our medical system is not integrated, which leads to repetitive testing and over-treatment.
3. Rise of Chronic Illness and Obesity
Did you know almost half of the population of the United States has one or more chronic conditions such as asthma, heart disease or diabetes? Chronic diseases associated with an aging population increases costs. In addition, two-thirds of adults are overweight or obese, which also leads to chronic illness and medical expenses inflated.
4. Healthcare is not widely available
Another reason for the increase in health insurance costs is health is not yet fully disseminated widely. Most people do not pay directly for their health insurance - their employer. Consequently, most people are disconnected to really make informed decisions about their health care costs and coverage.
5. Cost Lack of transparency
Despite a wealth of handy information via medical journals and the Internet, there is no uniform or average quick to understand the treatment options and costs associated with them. This lack of cost transparency means that consumers can not really make informed decisions -. Even if they are savvy consumers of health care
6. Carrier Consolidation
Reid Rasmussen As reported in an article Benefits Pro earlier this month, the carrier will lead to consolidation reduced competition costs and higher costs. For example, the five largest health insurers reduced to three with Aetna (# 3) buy Humana (# 5), and Anthem (# 2) absorbent Cigna (No. 4). Also left the company Assurant health insurance last year, 22 of the 23 cooperatives created PPACA closed, and United Healthcare made news this month as they leave much of ACA markets.
7. Plan Fewer options and smaller network providers
As the health and health insurance costs rise, health insurance companies need to a way to control costs. One approach is to limit the available plans. Another is to limit provider networks. The result? Consumers in many markets are fewer plan options and reduced access to physicians and suppliers.
8. Pharmacy soaring costs
The latest trend influencing the rising cost of health insurance is soaring pharmaceutical costs. As Rasmussen reported up to 40 percent of the cost of medical drugs will be in 2025.
Conclusion
The main reason for the increase in health insurance costs are related to the rising health care costs in America, less competition from the insurer, and the lack of transparency to make informed consumer decisions. What other trends you see that leads to higher health insurance costs?
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