Why Have Health Insurance Premiums Skyrocketed?

An article in WebMD analyzed the 2011 surge in the cost of job-based health insurance, citing provisions through healthcare reform as the main drivers of increased cost.

Over the past decade, employees' share of health insurance premiums have risen from under $1,800 to over $4,100 a year, representing an increase of 131 percent since 2001. Last year saw an 8 percent increase in individual plan premiums and a 9 percent increase for family plans, according to Kaiser Family Foundation.

According to an analysis by researchers at Towers Watson consulting firm and Jon Gabel of the University of Chicago, the increase can be tied to several changes brought about by healthcare reform. Under healthcare reform, children can stay on their parents' employer-supported health insurance until age 26. In addition, the majority of job-based plans must now pay the full cost of preventive care, and insurance companies can no longer set a limit on lifetime benefits.

Related Articles on Coding, Billing and Collections:
Surgery Center Coding Guidance: Lesion and Tumor Coding
2012 CPT Arthroscopy Revisions Pose Financial Hit to Both ASCs and Surgeons
CMS Reviews Arizona's Request for Medicaid Cuts

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Webinars

Featured Whitepapers

Featured Podcast