Health Insurance by Ron J. Bommarito

A Health Insurance Specialist presents some clarity

As many of you are personally and painfully aware, health insurance rates are climbing and coverage is dropping. Employees are asked to shoulder an increasingly larger share of the cost, while employers are still paying the lion's share. Medicare does not cover prescriptions, yet seniors are pushing for legislation for the taxpayer to start paying for them. The tug and pull of these problems is not easily solved.

Although many of the issues that surround this topic are large, national ones that are beyond our ability to directly influence, I hope to bring some clarity to the subject. Health Insurance Specialist (HIS) is a licensed health insurance sales agency serving Southeastern Michigan since 1990. Ronald J. Bommarito is the agency principle. He is available by phone at 1-800-982-8282 or on the web at www.healthspecialist.com. HIS is involved in the struggle to provide the best coverage at the least cost without compromising quality. This daily involvement with individuals and employers puts HIS in the forefront of these issues. As a result, we offer timely, accurate and honest advice to mitigate these burdensome increases of the past few years. This is the second in of a series of articles designed to educate and inform.

12-30-02

Health Insurance Rates rise ----again!
by Ronald J. Bommarito

Why Rates Change

Inflation, government regulations, fraud, and changes in your employees' group profile and health status may impact premium rates. However, "health care trend" is one of the biggest influences. Health care trend is a complicated concept, but it boils down to a couple of basic ideas: the cost of health care products and services, and how often consumers use those products and services (utilization). Rapidly climbing costs, combined with rising utilization, present a powerful one-two punch. For example:

Doctor and hospital trends--Study after study reveals that doctor and hospital trends have escalated in recent years--by as much as 10 to 15 percent annually according to one report. New facilities, technologies, and procedures allow more people to seek more advanced health care services. And highly specialized services come with a high price tag.

Prescription drug trend-In recent years, pharmaceutical companies have aggressively introduced and promoted many new drugs-creating a new wave of demand. The cost of research, development, and advertising can be staggering. Ultimately, their expenses are passed on to the consumer. Driven by rising prices and utilization, Americans spent nearly $132 billion on prescription drugs in 2000, a 41 percent increase over 1998.

Pharmaceuticals now advertise- Just a few years ago it was illegal to advertise medications. Think back. Ten years ago did you see every magazine carry multiple page ads for medication? No, but the lobbyists got that bill through and now we are bombarded with advertising. Television, magazine, radio.. the cost of that advertising needs to be paid for by those who buy medications. But more importantly, the advertising works! We are now using more medications.

Next month our topic will be "What You Can Do "

Ronald J. Bommarito is the agency principle. He is available by phone at 1-800-982-8282 or on the web at www.healthspecialist.com.

Archives:

More Your Money Archives

Sponsor