Why are healh insurance costs so high?

One of the biggest complaints and problems with getting health coverage is the cost. I came across this very good article that touches on some areas that a lot of people dont know exist in the computation of health insurance premiums by insurance companies. The Obama administration will be making changes in the health insurance industry and this may be one way he will attempt to do so. I have included that article and you can be the judge.

Study says uninsured are costly for all
By ERICA WERNER

WASHINGTON (AP) - The average family with health insurance shells out an extra $1,000 a year in premiums to pay for health care for the uninsured, a new report finds.
And the average individual with private coverage pays an extra $370 a year because of the cost-shifting, which happens when someone without medical insurance gets care at an emergency room or elsewhere and then doesn't pay.
The report was being released Thursday by advocacy group Families USA, which said the findings - which it calls a "hidden tax" - support its goal of extending coverage to all the 50 million Americans who are now uninsured. Congress and the Obama administration are working on a plan to do that.
Families USA contracted with independent actuarial consulting firm Milliman Inc. to analyze federal data to produce the findings.
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"As more people join the ranks of the uninsured, the hidden health tax is growing," said Ron Pollack, Families USA executive director. "That tax hits America's businesses and insured families hard in the pocketbook, and they therefore have a clear financial stake in expanding health care coverage."
The report found that, in 2008, uninsured people received $116 billion in health care from hospitals, doctors and other providers. The uninsured paid 37 percent of that amount out of their own pockets, and government programs and charities covered another 26 percent.
That left about $43 billion unpaid, and that sum made its way into premiums charged by private insurance companies to businesses and individuals, the report said.
The major government insurance programs - Medicare for the elderly and Medicaid for the poor - are structured in a way that doesn't easily allow payments to insurers to adjust upward. And somebody has to pay.
Ronald A. Williams, chairman and chief executive of Aetna Inc. (AET), gave the example of a local community hospital that provides care to someone without insurance who arrives at the emergency room. When it's not paid for, the hospital has to raise its rates to insurance companies, and they pass that on in higher premiums, Williams said.
"Our members then say, 'Well, why is health insurance so expensive?'" Williams said in an interview. "And the answer is because you're paying for your own care as well as for the care of some of the uninsured in the community."
Aetna was not involved in writing or funding the report but Williams planned to appear at a news conference Thursday with Families USA officials to release its findings.

Stay Healthy Stay Informed

James Cardin

Does your college graduate have health coverage?

It is graduation season and I receive many calls a day for students that need coverage because they are coming off their parents group plan. There are may Individual plans available for these students and the rates are usually very affordable. The Obama administration will be making changes to the health care system in the coming months and years and having a plan in tact will be important for your son or daughter. Coverages that are available now many times include preventive care and prescription drugs. What these plans will look like in the future is unknown. My advise would be to look into a good plan that they can hold on to indefinitely.

My Birthday Blog!

After taking another spin around the Sun, I remember it is time to make my annual physical appointment. This is one benefit everyone should consider when purchasing health coverage. Many plans have preventive care coverage at 100%. If you check into Health Savings Accounts or similar plans you will find that these plans tend to give the most preventive care coverage. The deductible may be a bit higher tan other plans but for healthy families with children this is a valuable benefit. Well checks and immunizations are many times also covered at 100% without having to meet any deductible first. For adults it is not just annual physicals that are covered but many times annual OBGYN visits and mammograms and screenings are all covered without having to meet a deductible.

COBRA- Is it a good option for you?

I have been answering a lot of questions about COBRA for many of my clients that have left their employment for whatever reason. COBRA is an extension of group coverage offered to employees that leave the company and the company has at least 20 employees. The Obama administration has implemented a subsidy on the premium for this coverage. The subsidy will pay 65% of the premium for those that qualify. One would need to contact their human resource department and ask if you are qualified for the subsidy. If you do, the subsidy will play out and end after 9 months. It may be a good option and a competitive rate. Taking this coverage for the nine months and then getting an individual plan is definitely something to consider. You can contact me with any questions on your particular situation. Good luck in all your effort. Have a great day!