Why are Insurance Premiums always going up with fewer benefits?

Rate Increase for COVID 19?

The COVID-19 outbreak could cause premiums for individuals and employers to spike from 4% to 40% next year, according to a study from Covered CA!

Treatment costs could also vary dramatically, as they could be roughly $30,000 per admission for COVID-19. That figure is based on Medicare rates and the average length of stay of 12 days, which is a similar length for other respiratory cases such as the flu or pneumonia. ^{Fierce Health Care} *

AIG Flyer on how American’s don’t have savings and are not prepared to have $$$ for emergencies or health care.  

How to explain?

It’s difficult for me to explain when people facing a premium increase, why.  For some reason, I feel it’s argumentative.   I’ll hear that they aren’t having claims, they watch their health, we should have Medicare for All.  I hope it won’t wind up as Medi-Cal for all, like some think ACA/Obamacare did, etc.  In addition, Covered CA agents are mandated to help people enroll in Medi Cal without any compensation!

Thus, I’ve compiled on this just about every resource I could find to help explain why it’s so expensive to go to a doctor, hospital or get a Rx drug.   Including a feed from CHCF California Health Care Foundation on the latest health care news and trends

Please note also, that under ACA/Obamacare and even before, Insurance Companies are mandated to spend under Medical Loss Ratio Rules a certain amount 80-85% on health care costs.  My commissions have been cut because of this, as it’s not considered health care.  Thus, I’m doing more work, for less pay.  With the internet, it does help to make it up on volume.

Options to improve affordability in CA Health Market 68 pages  June 2019

President Trump said Insurance was more complicated than anyone knew.  He should have asked me or reviewed my website!

If you have comments or questions, please post those below.  You don’t have to put in your name.

Increased demand for health care.

More and more people with medical insurance are relying on the health care system as new technologies and treatments become available. This leads to a greater number of claims for payment by insurance companies, the costs of which are passed back to health care consumers.  (articles on how to be an “active consumer”) Employer-sponsored coverage  consumer demand for broad networks of hospitals and physicians and the easing of restrictions by health plans, coupled with hospital consolidation and a reduction in excess capacity, have increased the bargaining clout of some hospitals vis-à-vis health plans.

• “Hospital spending is back with a vengeance, and the likely causes are the retreat from tightly managed care, which has increased demand for hospital services, and rising labor costs,”
• The hospital industry says rising costs simply show rising demand.  “The driving factor is Americans are using more hospital services.”
• But health insurance companies say hospitals negotiating for money, not simply consumer demand, fueled the increases.
• The biggest contributor to utilization increases is advancing medical technology new drugs, medical devices, surgical procedures, and diagnostic tests.