Health insurance is imperative if you want to protect yourself financially, but it can feel expensive. So many people wonder why health insurance costs so much and what they can do about it.
3 Reasons Health Insurance Costs are High
Health insurance costs have increased recently, but not because of anything you’ve done. Here are the top reasons everyone sees higher costs.
Treatment Costs More
As technology advances, we get more innovative ways to get proper medical care. But advancements in technology mean higher costs. So it’s a tradeoff for patients – you get better medical care but have to pay for it.
Since insurance companies cover the cost of medical treatments, they must charge more for insurance, so they have the funds to cover the medical costs.
Chronic Diseases are on the Rise
Almost 50% of Americans have chronic diseases, and the costs take up 86% of healthcare costs. These chronic diseases include things like obesity, diabetes, heart attack, stroke, and cancer.
Prescription Drug Prices are Increasing
By 2025, prescription drug prices are expected to increase by 136 percent. Since prescription drugs are an important part of medical care, including prevention and treatment, it plays an important role in rising healthcare and health insurance costs.
3 Ways you can Control your Health Insurance Costs
The above reasons health insurance premiums are increasing are within your control. However, there are some factors you can control to keep your costs down.
Manage your Weight
Avoid becoming obese; if you’re overweight, consider getting help to lose weight. The less you weigh, the lower your risk to insurance companies. Overweight people are at higher risk of heart attack, stroke, and diabetes.
Get Preventative Care
See your doctor for regular checkups, and stay on top of your preventative care. Then, if your doctor catches any issues early, you can get them treated and avoid major issues. The healthier you are, the less your health insurance will cost, and staying on top of your preventative care is the key.
Watch your Lifestyle
Your lifestyle affects your health insurance costs too. For example, if you smoke, drink, or take risks like skydiving or racing, you put yourself at a higher risk, and the insurance company will adjust your premiums accordingly.
Unfortunately, you can’t control all factors that affect your health insurance costs. For example, as you age, your premiums will increase. As you get older, you’ll likely need more extensive medical care. So insurance companies need to prepare for this by increasing premiums.
Health insurance prices might seem high, but all prices increase with inflation. So healthcare costs are rising too, which means health insurance companies must protect themselves so they can keep protecting their members financially too.