The American healthcare system is expensive, to say the least. With costs rising, more and more people are considering health insurance. However, not all health insurance plans cover everything. This means that many Americans have to pay out of pocket for the treatments they need – a significant expense. In this article, you will learn what’s happening in the US healthcare industry and why healthcare premiums are increasing so drastically.
What is an Insurance Premium?
An insurance premium is a fee paid by an insured person or company for the insurance protection provided by an insurer. Premiums are set according to a variety of factors, including the type of policy, the coverage, and the age of the customer.
Why Are US Insurance Premium Increasing?
The average US insurance premium has increased by an estimated 8.8% in 2018, according to the most recent report from the National Association of Insurance Commissioners (NAIC).
According to NAIC, the increase was driven by a number of factors, including an increase in claims costs, continued demand for insurance protection and higher premiums for older Americans.
The NAIC report found that the average family policy premium increased from $1,256 in 2017 to $1,341 in 2018. The premium for a single individual policy increased from $680 to $711 during this time period.
Premiums for small businesses also continue to rise, with the average premiums increasing from $4,884 in 2017 to $5,424 in 2018.
There are a number of ways that you can reduce your insurance premiums. You can review your coverage and compare rates online or with a broker. You can also consider bundling your policies together to save on overall costs.
Who Gets the Biggest Boost?
One of the big questions in the insurance industry is who gets the biggest boost from rising premiums.
The answer is not always clear, but there are a few factors that can affect who ends up paying more.
For starters, people who live in high-cost areas are likely to end up paying more for insurance, since their premiums will account for a larger portion of their monthly bills.
In addition, people with pre-existing conditions may find themselves facing higher premiums as insurers seek to protect themselves from potential lawsuits.
Finally, employers may be forced to increase employee health coverage or pay higher rates on their own.
Who is Affected by This Increase the Most?
The United States is seeing an increase in insurance premiums, and this increase affects a wide range of people. The highest premium increases are being seen in states that have high rates of unemployment, and these rates are projected to only continue to rise. The most affected groups are those who are least likely to be able to afford the increased premiums, particularly low-income individuals and those who have pre-existing medical conditions.
There are a number of reasons why US insurance premiums are increasing, and it’s hard to say which one is behind the increase in recent months. Some experts say that it could be because more people are getting hurt in car accidents, or that there is an increased risk of natural disasters. Others attribute the premium hikes to changes made by the Trump administration, such as cutting back on health benefits for people who switch their coverage from one company to another. Whatever the reason may be, it’s clear that premiums will continue to rise unless something is done about it.