Health insurance premiums have seen major changes in recent years due to the Affordable Care Act. But trends in health care can also impact the price of insurance. As price of care rises, so do the payouts by insurance companies – and the result is that these higher costs are passed on to policy holders.
The follow four trends are emerging, and may affect your health insurance premiums in the near future.
New drugs. Pharmaceutical companies continue to develop more effective, high-tech treatments for the diseases that plague us. But along with all that research and development comes a higher price on many drugs.
Higher deductibles and co-pays, which must then be covered by employees when they seek medical care.
Different models of health care. Some insurers have attempted to provide better value and facilities. However, the plan has in many cases backfired, as disgruntled customers have filed lawsuits over lack of access to preferred physicians. The cost of these lawsuits may be passed on to the consumer.
Advancements in technology. Certain advancements in technology aim to improve the overall health care system. But so far, various difficulties within the health care industry have limited the impact of these new technologies. In the future, advancements in data management and customer convenience carry the potential to lower health care costs for everyone, but we aren’t there just yet.