Why Ohio Health Care Costs Are Rising
Ohio health insurance premiums are rising. This is mainly due to increasing health care costs. Itís important to understand the factors that contribute to rising costs of health care. Controlling these factors can help to slow down the rise in premiums.
insurance premiums are rising, even for those who do not use a lot of health
care services. According to a survey conducted by Kaiser Family Foundation and
the Health Research & Educational Trust, premiums have increased nationally
by 97% in less than a decade, about three times as fast as wages and inflation.
This is a worrying trend because more Ohioans are
looking to purchase coverage to meet the requirements of the Individual Mandate.
Moreover, spending more on health insurance would mean having less to spend on
essentials like food and gasoline. Understanding and controlling the factors
that contribute to rising costs of health care can help slow down the rise in
premiums to some extent.
Contributing to Increased Expenses on Health Care
insurance companies fix premiums based on age, location, and the costs to pay
for membersí claims. According to leading health insurer Anthem Blue Cross Blue
Shield, 87% of premiums are used to pay for medical services and products, 10% goes
to cover administrative costs, and 3% to health insurer profits. It is the
costs to pay for the claims of the insured that are going up and causing Ohio health
insurance premiums to increase. Here are the main reasons why health care costs
Health Reform and Ohio Health Insurance Companies
Health reform aims to control health insurance
costs. Ohio will
soon have a federally-run health insurance exchange where individuals and small
businesses can purchase affordable coverage. Health care law has provisions
aimed at checking insurance fraud, patient outcome-based reimbursement for physicians,
insurance carriers such as Anthem are working to help
members save expenses on care by helping them get discounts from service
providers, encouraging use of generic drugs, encouraging healthier life styles,
and fighting fraud. Insurers are also striving to reduce their own costs so
that they can provide health insurance Ohio at
more cost-effective rates.
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ABOUT THE AUTHOR
For over 25 years, One Source Benefits has been helping clients choose the right Ohio health insurance plan offered by popular carriers. Get comprehensive health insurance in Ohio by calling 877-549-1212 (Toll Free) and talk to a licensed consultants for professional guidance.