As healthcare costs continue to rise, the implications on health insurance and consumers cannot be ignored. The perpetually rising healthcare costs coupled with dwindling healthcare benefits and insurance coverage has left a majority of consumers struggling to keep up. The following are some of the impacts of the rising healthcare costs on health insurance and consumers.
More expensive health insurance premiums
One of the most significant impacts of the rising healthcare costs on consumers is the increase in health insurance premiums. With the cost of healthcare rising consistently, insurance companies have to hike their premiums to offset the expenses. Thus, when healthcare costs increase, so do the premiums. This means that insurance providers are passing the rising healthcare costs to consumers, making health insurance less affordable for many.
Higher deductibles and copayments
As the cost of health insurance rises, so do the deductibles and copayments. Insurance companies gain regulatory approval to increase deductibles in order to offset the costs of healthcare. This means that the consumers must bear a more significant share of healthcare expenses out of their pockets. This puts even more of a strain on already cash-strapped consumers who are forced to either forego healthcare or dip into other household expenses.
Limited healthcare options
Establishing a cost-effective healthcare system requires too many steps, and healthier lifestyles. However, when healthcare costs are high, insurance providers might not be able to offer consumers as many healthcare options. In some cases, certain healthcare options might become completely unavailable to consumers. For instance, if an insurance provider cannot afford to cover certain medical conditions, consumers will not have those conditions covered even if it affects their quality of life.
An increase in the number of uninsured individuals
As the cost of health insurance continues to rise, more and more people are unable to afford health insurance coverage. This has led to a rapidly increasing number of uninsured individuals. According to some recent studies conducted by the US Census Bureau, over 27 million people in the US lack health insurance coverage. This means that a significant portion of the population in the US are at risk of significant health care bills, which will further perpetuate the cycle of rising healthcare costs.
In conclusion, rising healthcare costs have a significant impact on health insurance and consumers. Rising premiums, deductibles and limited healthcare options, combined with fewer people having access to health insurance, is …