Newspapers report that Health Insurance Premiums are rising although Healthcare use is decreasing.
Among the reasons cited for the decrease in visits to the doctor, and in scheduling tests and operations, are reasons which have previously been explored here in the past year or so. They are:
- Increased deductibles and co-pays.
- More Exclusions from Coverage.
- Greater cost burdens on persons filling prescriptions as Health Insurance Companies shift a larger part of the burden of many or all prescription drugs to patients.
See Reed Abelson, "Health Insurers Profit as Many Postpone Care / Earnings Hit Records / Patients Cut Spending, but Premiums Are Still Rising" p. A1, col. 6 (New York Times, Saturday, May 14, 2011). Parenthetically, an indicator of most people's financial cutback on health care is the fact that many people once resisted buying generic drugs, but since much of the cost of prescription drugs is now being borne by the patient, people are purchasing generics in greater numbers than before. Id.
Another obvious reason that many people postpone health care is the focus of these reports: Health Insurance Companies raising Premiums. Many people are obviously postponing health care because the decreased Coverage, increased deductibles, increased co-pays, and increased share of the patient in bearing the cost of prescription drugs is accompanied by an increase in Health Insurance Premiums for personal, individual Health Insurance Policies (as well as by high Premiums for employment-based Health Insurance in many cases).
The author is Co-Chair of the Health, Life and Disability Insurance Law Subcommittee of the Insurance Coverage Litigation Committee of the American Bar Association.
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