Tuesday, January 26, 2010

Health Insurance Costs Expected to Rise in 2010

Health insurance costs are expected to rise in 2010. Majority of the insurers are planning to increase health care costs in the current year. As such employers are reducing employee benefits and shifting the costs to the employees. Reports suggest that the percentage increase is expected to be between 7% and 12%. However, much depends on the size of the business and the coverage an employer takes for its employees. It is being anticipated that the worst hit will be the individuals as well as business entities of smaller size.

The premiums have been escalating very steadily over the years. And studies reveal that the rate of increase in health insurance cost is several times more than the rate of inflation. This has made the health care costs skyrocket. There‘re very few people who benefit from health insurance and surprisingly an unaccountable number is either uninsured or underinsured.

Since the private sector has taken care of health insurance all these years, they have monopolized the show and consumers are left with limited options but to avail what is being offered to them. There are complaints that health insurance providers lay more stress on promoting their products and services rather than offering help to the needy.

Health insurance costs have escalated at an alarming rate over the years and consumers have failed to keep up with the costs due to the fact that their income didn’t keep pace with the rising costs. This has dramatically increased the rate of medical bankruptcy since the consumers were not able to make payments for availing health care, the cost of which was overwhelming.

In order to make health insurance affordable for all consumers, the Obama Administration is planning to bring about the necessary changes that can offer health care for all at a reasonable rate.

The federal government is planning to offer a public option as compared to the prevailing private health care system. The new changes that are expected to be implemented by the federal government are expected to bring in some relief for common people and give Americans the health care advantage that they rightfully deserve.

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