Why are health insurance premiums so high? -

Because claims filed are so high. Pretty much EVERYONE who has health insurance files a claim. Some are less than their premiums, many are hundreds of times higher than their premiums. IN 2007, there was $7,000 spent, for every single man, woman, and child in the US. At that rate, in order to break even, the insurance companies have to charge at least $7,000 per year, for every man, woman and child. And I don't think the "average" premium is that high (over $500 per month, per person). 1. People go to the doctor when they really don't need to. Whatever happened to "take two aspirin and call me in the morning"? 2. Patients demand the newest and most expensive tests and medicines even when an older, lower cost alternative is perfectly adequate. 3. Uninsured people. When they don't pay their bills, the costs get passed along to the insured people though higher bills-->higher insurance payouts--->higher premiums to cover the insurance payouts. 4. People keep suing doctors for ridiculous amounts for things that could not have been reasonably prevented. Humans are not robots and sometimes things do not go as expected....AND IT IS NOT THE DOCTOR'S FAULT! As a result, medical malpractice premiums keep rising so the providers have to charge higher prices. 5. Out of shape, unhealthy population. Being out of shape, having bad eating habits, not getting enough sleep, smoking, etc leads to a number of medical conditions which could have been prevented. Instead, millions of people have diseases or conditions related to their preventable actions which require long term/constant medical care. 6. Insurers are in it to make money. 7. Pharmaceutical companies spend millions on advertising which gets passed on to the customers in the form of higher drug prices. (Yes, they spend a lot on research but they spend even MORE on advertising to convince you that you need their product.) Basically, it's a combination of a whole bunch of things. same reason why medical costs are so high, these companies are in it to make a profit, so when hospitals and doctors and policyowners abuse the system, you get this.. There is no question that health insurance premiums are high. In 2005 (the latest year data are available), total national health expenditures rose 6.9 percent -- two times the rate of inflation. Total spending was $2 TRILLION in 2005, or $6,700 per person. Total health care spending represented 16 percent of the gross domestic product (GDP). U.S. health care spending is expected to increase at similar levels for the next decade reaching $4 TRILLION in 2015, or 20 percent of GDP. The only way to save money on your own health insurance premiums is to participate more in the cost of your health care expenditures by the use of higher deductibles, higher copays, forgoing prescription drug coverage and doctors office visit coverage. If you are young and healthy look into a plan that allows the use of Health Savings Accounts to pay for your medical expenses with pretax dollars. If you have a chronic illness there is not much you can do about the high cost of health insurance as your options are limited. Just grimace and pay the premiums. Everyone on this forum, so far, has provided intelligent, right on answers. I'd like to add that crazy lawsuits where pharmaceuticals and doctors are being sued for the least little thing also factor into the equation. The next question you probably need to ask is - how can I save on my own premiums. High insurance premiums - and how to get them lower - is a hot button issue for me. If you are looking into individual or small group health insurance, my website my be of assistance. See below, and thanks for asking a very valid question.