Medical Health Insurance Costs Lead to Lowered Health Care Use
August 2010
Perhaps it's the bad economy, the loss of jobs, or even the higher deductibles that so many people are paying for their
health coverage, but the latest data on health care reveals that Americans are relying on fewer medical services.
In their most recent
healthcare piece, the Wall Street Journal suggests that the loss of jobs, combined with the high costs of medical health insurance and the end of COBRA, have led many Americans to minimize their use of hospitals, treatments, medications, and procedures.
One reason that use of medical services is down could be that Americans with little or no health coverage are choosing to forgo elective procedures like hip and knee replacements. Skipping such procedures is a way to save money, though it's likely a painful way that can only be held off for awhile.
Others suggest that as more Americans opt to purchase
medical health insurance with higher deductibles they are thinking more carefully about how they utilize such services. In many cases cheaper alternatives to prescription drugs and medical care are available, but few people take the time to find them.
The result of this drop in health care use include a boost in profits for health insurance companies. Their rates are typically designed based on their projected costs in the next year. As costs go down insurers get to keep more money.
If costs could stay down, premiums would likely go down as well, since health coverage costs must be based on medical inflation according to new laws.
Facts on:
Medical Health Insurance
Did you know...
health coverage costs are leading to a lowered reliance on medical care?
|
However the healthcare bill, which demands greater transparency for medical health insurance, could also have a negative impact on this drop in medical services. If it is true that many Americans are putting off procedures they need because they can't afford them, gaining access to more affordable coverage would theoretically lead to a boost in those procedures.
While no one wants to purchase lower health insurance premiums at the cost of pain and suffering, there is still concern regarding exactly how people will respond when the healthcare bill comes into effect and medical care becomes more affordable.
Stopgap measures to prevent overuse of medical insurance have been discussed, and will theoretically be implemented to some degree once health insurance exchanges are established on a state-by-state basis.
Recent Topics:
