Medical costs seem to increase every year, and along with these cost increases, health insurance premiums often follow. To add to this, deductibles often rise along with premiums and the overall cost of healthcare, leaving many Americans to wonder why health insurance is so expensive. After all, the whole point of health insurance is to save money, right? So, why does it seem like the thing that’s supposed to help cut down on costs is the thing that costs so much?
Your Need For Care
Before getting into the general reasons why health insurance is so expensive, it’s important to first clarify that your health insurance may be expensive due, simply, to your health. If you’re someone who has a chronic medical condition or you need complex care, your health insurance costs may be higher than those of other people.
This is because the insurance provider is going to end up spending more money to cover your medical care costs compared to someone who does not have a chronic condition or need comprehensive care. On average, you’re going to spend more on health insurance costs like copayments and coinsurance than someone who is in good health.
Thankfully, you can often remedy this situation by taking a careful look at your insurance policy. Many people pay premiums month after month without realizing that they have a policy that is not a good fit for their needs.
You can work with an insurance broker to help you find the right plan and compare options. Allowing an insurance expert to help you review your needs and your current policy may lead you to find a policy that costs less per month and saves you money on overall healthcare costs.
The Cost of Medical Care Going Up
Medical technology is the most advanced it’s ever been, but behind all the advancements in medical science is a whole lot of cash. The trade-off for living in a modern society with access to advanced medical care is that the costs involved in developing this care often gets passed along to the patient. Because an insurance provider covers these costs, a portion of it will be put back into the cost of health insurance itself.
Lifestyle Choices Matter
Health insurance can also be very expensive for people who partake in certain lifestyle choices. People who smoke, for example, will likely see higher health insurance costs as will people who engage in other unhealthy activities. Once again, the insurance provider is likely to spend more on someone who endangers their health, so these costs may get included in the costs associated with carrying a policy.
Older Americans Tend to Have Higher Costs
Older Americans suffer from more health concerns than those who are younger. This isn’t fair, but it is a fact of life. Health insurance costs for older Americans tend to be higher as a result, but the good news is that programs like Medicare may be able to help.
Medicare provides health insurance coverage at a relatively low cost to Americans who qualify. In general, these Americans are over the age of 65, but some people with qualifying disabilities may also take part in Medicare prior to reaching age 65.
Taking Control of Your Costs
Because there are some factors you can control regarding your health insurance costs, it would be wise to stay as healthy as possible. Additionally, working with an insurance broker may be the best step you can take in finding a health insurance plan that works for your needs and your unique health situation.