Why is health insurance so expensive?

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• The average price of an ER visit can cost you thousands of dollars
• Malpractice insurance has caused an increase in physicians’ fees
• The Affordable Health Care Act was designed to help low-incomes families

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There is no one reason why health insurance is so expensive, but there are many determining causes. One major cause is the rising cost of health care itself.

Taking a trip to the emergency room can range anywhere from $150 to $5000 depending upon the method of transportation, ambulance charges are extra.

Then there are the lab fees and diagnostic tests to determine the course of treatment. Physicians’ fees are increasing due to malpractice lawsuits.

When you consider everything involved with health care, it is plausible that health insurance costs must also increase.

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What can be done to lower the cost of health care?

However, in 2010, the way that health insurance is managed changed. The Affordable Care Act was passed in March 2010 and made health insurance companies alter the way they approach healthcare.

Previously, your health insurance company could charge you high rates based on things like pre-existing health conditions, chronic illness, or income level.

The passing of the Affordable Care Act put a halt to these practices. Americans now have “affordable” health insurance benefits since it’s illegal for health insurance companies to charge you a higher rate or deny coverage based on your medical history. This new developments put everyone on an equal playing field.

Does this mean that all health insurance providers will offer the same rates?

No, the insurance company you choose can still dictate individual rates for their customers.

They cannot charge you more or deny your application if you have an extensive medical history, but they still have various ways of determining your premium.

There will be some instability to content with and perhaps for the first year of your initial policy, you may need to deal with some restrictions.

Once the law is fully implemented, the health insurance industry will begin to settle in, and the rates should stabilize.

A change to the way health insurance is acquired is something that many Americans feel is long overdue, but patience is required to make sure you receive the benefits you deserve.

Will the Affordable Care Act help to reduce the cost of medical care?

Most experimental treatments are subjected to extreme scrutiny before the health insurance company makes a decision as to whether it will be covered or not.

In most circumstances, the patient is suffering from a debilitating illness or disease that is unsuccessfully treated by conventional methods.

Your doctor or specialist should have the final say in the type of treatment you receive, but most times, they don’t.

If you require non-traditional treatments, your doctor will need to prove that all other methods have been exhausted with little or no improvement.

Most experimental procedures are high risk and extremely expensive. The choice to approve or deny coverage continues to lie in the hands of the health insurance companies.

Within the next few years, health insurance companies will have to seriously reconsider their current processes, as more patients will become aware and eligible to receive this type of assistance.

Does the Affordable Care Act have a timeline?

The first part of the Affordable Care Act was launched in March of 2010. Some of the features include:

• Credit for small business
• Coverage for young adults under age 26
• PCIP or plans for people with pre-existing conditions
• Free preventive care
• Appeals

The first portion of the benefits is designed to address the most critical issues that Americans are facing today.

This includes making sure children receive proper health care with routine office visits and immunizations.

Additionally, people who once were denied health coverage because of their medical background are now eligible to receive a decent level of health insurance. During 2011, most of the benefits included:

• Health centers
• Consumer awareness programs
• After-care for seniors
• Quality care programs

Placing the emphasis on community-based programs was the second phase of the Affordable Care Act.

This helps to draw positive attention to things that affect senior citizens and those suffering from social diseases like AIDS.

The remaining benefits that will roll out between 2012 and 2014 will focus on the administrative side and organizational accomplishments, like the Children’s Health Insurance Program.

There is no question that health insurance costs are rising and continue to increase annually, but there is a light at the end of the tunnel.

Very soon, many Americans will be able to afford health insurance without having to consider it a luxury.

Preventive care out-of-pocket expenses will be a distant memory and chronically ill patients will receive proper treatment.

The revamping of the healthcare industry is something that many Americans have waited a lifetime to see.

Although it is becoming a reality, we still have to wait and see how health insurance companies respond over the next few years.

If the past is any prediction of the future, you can bet there still will be many obstacles to affordable healthcare for many people.

Fortunately, the Affordable Car Act is a good step in the right direction.

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[su_spoiler title=”References:” icon=”caret-square” style=”fancy” open=”yes”]

1. http://obamacarefacts.com/affordablecareact-summary/
2. https://en.wikipedia.org/wiki/Doctor%27s_visit
3. http://www.webmd.com/health-insurance/insurance-costs/how-to-find-low-cost-health-insurance
4. https://www.medicare.gov/sign-up-change-plans/get-drug-coverage/get-drug-coverage.html
5. http://www.ncsl.org/research/health/childrens-health-insurance-program-overview.aspx
6. https://www.healthcare.gov/get-answers/

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