Discover Why Insurance Rate Rise Even For Healthy People by Charles Myrick of American Consultants Rx001 by myrickcharles

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									Discover Why Premiums Increase Even If you Are Healthy by Charles Myrick
of American Consultants Rx-Free Healthcare Help Tips


Question: I'm Healthy. So Why Does My Health Insurance Premiums Increase
Each year?

Toward the end of each calendar year, we begin to hear from our
employers' human resources departments, or from the insurers and payers
who oversee our health coverage about how much we'll have to pay for
coverage the next year. Each year those premiums increase, sometimes by
double-digit percentages. Why is health insurance so expensive? And why
do I have to pay more every year, even if I'm healthy?
Answer:

Health insurance premiums go up because medical costs increase. Doctors
need to be paid more, drugs are more expensive, testing technology gets
more sophisticated and expensive, and so forth.

If we understand how health insurers determine their annual premiums,
then it's easier to understand why it gets more expensive, even when we
are healthy.
How health insurance premiums are determined:

Each year, the insurer will develop profiles of its patients, then
figures out how much that profiled patient will cost. For example, one
profile might be for male children, age 2 to 6. The insurer will
determine an average number of doctor visits each child will need, how
many vaccinations he will need, how many times he'll fall and need
stitches, etc.

Another profile might be for a woman age 45 to 55. This woman will need a
checkup, a mammogram, perhaps a colonoscopy or a bone scan. She'll need a
blood test for diabetes or cholesterol. If she's fairly healthy, she may
still need to take one or more drugs, perhaps a statin to prevent heart
problems.

The insurer will also expect a certain number of surgeries, medical
tests, accidents, and other possible medical needs for each of its
profiled patients.

Using those profiles, multiplied by the number of patients they expect to
insure for each, the insurer can estimate what its costs will be.
Additional amounts for expenses and profit will be added to the total.
Then they'll do the math to find an average cost per patient or family.
That will be your annual premium.

Each participating individual or family will pay the same premium amount,
regardless of the health of the individual or family.

If you are employed, then you and your employer may share your premium
cost. If you don't have an employer to help you pay your premiums, the
entire cost will be yours. That's assuming, of course, that you don't
have a pre-existing condition that might eliminate the possibility of
being insured.

If you are healthy, then your premium cost will be far more than it would
actually cost you to get care over the course of a year. You might pay
thousands of dollars, and need only one visit to the doctor or one
prescription. You spend the money on the premiums because you don't want
to risk footing the bill for a major accident or illness.

If you are less healthy and a bit older, meaning more screenings are
recommended each year, then you might come out about even. Your several
thousand dollars in premiums might be close to the actual cost if you
paid out of pocket for those tests and doctor visits. Still, you spend
the money on the premiums because you don't want to risk major expense
should you be diagnosed with a difficult disease or be hurt in a fall or
other accident.

If you are sicker, especially if you are older and sicker, then your
insurance premiums will be a real bargain. For those with a chronic
disease like diabetes or heart problems, or for someone diagnosed with
cancer or any debilitating disease, your actual cost of care, if you paid
from your own pocket, could be hundreds of thousands of dollars.

If you are over age 65 and receive Medicare, your care coverage will be a
real windfall. You'll get the care you'll need based on the fact that you
are past retirement age. For most, you will have paid into that fund
throughout your working career. But if you have a chronic disease or are
diagnosed with any debilitating disease, your return on that lifelong
investment will be huge.

Now let's look at the bigger picture -- the population of the entire
country. Our population is aging, and as the entire group ages, then the
entire group needs more health care. Older people have developed chronic
diseases over a lifetime. They are more prone to life threatening
diseases like cancers or Alzheimer's disease than younger people are.

New babies are being born, of course. But we are also dealing with higher
incidences of children with autism and other problems which contribute to
the cost of care across the population.

More and more people can't afford the cost of insurance. Especially in
difficult economic times, fewer people purchasing insurance will mean
higher expense for those who do purchase coverage.

What can we do to lower the cost of insurance premiums?

First, know that lowering the cost of insurance is not the same as
lowering the cost of health care in general for us as individuals or
families. The cost of health care is spread across the entire population
as described above.

Second, if you are in the "sicker" category described above, or in the
over age 65 group, then you probably can't get health coverage less
expensively than what you pay now.
Those who are fairly healthy, or who have access to more than one plan
through their employers can have some control over individual costs of
insurance, including the price paid for premiums, deductibles and co-
pays, as follows:

 * Each year during the health insurance enrollment period for the next
year, or at the time you change jobs or for any other reason change
insurance coverage, take some time to do the actual calculations to
choose the best plan for you. Depending on your needs, the premiums may
not even be the most expensive part of your care.

 * Consider high-deductible, catastrophic care insurance. These plans
have much lower premiums and work well for people who are mostly healthy.
If you choose one of these plans, you can also choose to use a Health
Savings Account which is a way to make your health expenses tax-
deductible and helps you save the money you may need later for health
expenses. It also helps you limit the amount that gets sent to the
insurer in the form of premiums.

 * Figure out whether you are eligible for a state-run healthcare subsidy
program like Medicaid or others. Each state has different programs.


About the Author:
Charles Myrick,President and CEO of American Consultants Rx offers key
business,prescription and insurance reviews to assist the general
public.Charles Myrick also announced the re-release of the American
Consultants Rx community service project which consist of millions of
free discount prescription cards being donated to thousands of not for
profits,hospitals,schools,churches,etc. in an effort to assist the
uninsured,underinsured,and seniors deal with the high cost of
prescription drugs. The American Consultants Rx cards are to be given
free to anyone in need of help curbing the high cost of prescription
drugs. Visit http://www.charlesmyrick.com for more information

								
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