Whether you are an individual or you are in business, healthy, or battling some illness, it is no surprise that medical Insurance costs are on the rise. According to the estimate, Medical care will have tripled by 2027. The costs involved in health Insurance are the yearly or monthly premiums, co-pay costs, and other costs that you may need to pay out of your pocket regardless of a cover.
As the costs rise, you may still have to pay for some specialized service, and thatâ€™s why you need to look into Medigap plans andÂ Medicare advantage plans for 2021. There is a lot to be offered, but will your budget allow it, especially after the COVID-19 pandemic?
In case youâ€™re wondering why Health insurance covers are costly and on the rise, here are the reasons:
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Higher numbers of Chronic Illnesses
With the lifestyle changes, there has been an introduction of more cases of chronic illnesses. About half of Americans have a chronic illness. These illnesses include high cholesterol, Diabetes, Asthma, high blood pressure, obesity, and depression, to mention but a few. Diabetes is one of the high-cost illnesses to treat and maintain. This is because of the numerous clinic visits and the drugs that may be required.
The humans have filled the earth and maybe exhausting mother earth a little. The population is on the rise, and people seem to live longer. Unfortunately, the facilities do not seem to increase fast enough to match this growth. Retirees are also increasing in number, and this poses a challenge if the medical services remain the same. Because of this high demand for health care facilities, costs will continue to rise.
Health care Practitioners get more pay
Remember when you were growing up, and your parents wanted you to become a doctor? This is because doctors and nurses get high salaries. You will need to pay about 50% more to see a specialist. Because of the high salaries, there is an increase in the cost of hospital operations. In the end, the costs fall on the consumer as you pay your annual premium. Thus, you cannot blame them, as they pay for it in the long hours of studies and practice.
Increase in outpatients costs
Many hospitals have realized that many patients seek outpatient services more than inpatient or admission services. The laws of economics still apply here, with an increase in demand comes an increase in price. Optical and dental visits are some of the services that are on the higher side. In many cases, your cover will only include one screening per year, in case of treatment, you will have to top up the premium at the end of your contract or from your pocket.
The increasing cost of Premiums, co-pay charges, and Extras
You will realize that every year there is a review of your medical plans, and most of the time, you will be required to add more money. Medical covers cite their increasing costs to the rising of hospital operational costs. This is why youâ€™ll find an insurance agency will hike their co-pay or even change the plan. You might have to pay out of your pocket now more than ever. However, Government policy is another reason why premiums will increase.
Limited Medical Cover plans
It is quite the task to find a plan that is a perfect fit for your unique needs. This is because it will cost you more either to top up onto the government ones. However, the challenge with these is that there is a limitation where you cannot access quality services. Insurance organizations can come close to catering to your exact needs but always at a fee. Or you may need to work with more than one organization to fill in the gaps that may be a miss in one or the other.
The high cost of Prescription drugs
There are very few if any restrictions when it comes to prescribed drugs. Prescription drugs treat your condition, and if you have a chronic illness, then youâ€™re likely to visit the drug store more often. Unfortunately, many drugs, because they have got the patent, are a monopoly. This means that they are free to charge any amounts since they face no competition. In the long run, because everything affects everything, these high costs of prescribed drugs play a big part in the changes that you may find in the insurance premiums.
No transparency in the Medical Industry
As a consumer, you have no way of knowing what exactly you are paying. You have a lot of information with the click of a button, and yet medical information is not that available. One dentist can charge a higher fee than the other for the same services. Because the costs are not done efficiently, and the doctor knows, many clients will not challenge the decisions of a clinic or hospital. You know that medical services are rising, but does it mean that they will be offering additional products or services? Hence, these details are not clear.
To Summarize, these high costs of health insurance plans are the reason many people do not enroll. Jobs are no longer guaranteed, and many small businesses are failing sooner than they started. With all the uncertainty that you face. It is important to have the information that Health care costs will rise as long as the factors above are present. Plus, without transparency, and a lack of competition in the medical field, many people will continue to shy away from signing up a policy.
On the flip side, people are self-medicating and will not seek the treatment they need even though they may have a cover. This is because of the fear that treatment might be too expensive. Also, because of COVID-19, Governments are swamped and need to work with hospitals to ensure that every citizen can access health care services. This is a time to negotiate with health care providers for subsidized prices, and hospitals to reduce their operating costs.
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