FinancePolicy & Law

Why Health Insurance Is So Expensive

1 Mins read

Healthcare spending in the U.S. has been growing relentlessly over the last decades, becoming one of the major contributors to the nation’s long-term fiscal deficit. In 2011 alone, the U.S. spent 2.7 trillion dollars on healthcare, amounting to almost one-fifth of the total economy. Even more alarming is the fact that healthcare spending is growing 1.5 times faster than the country’s GDP. So, what are the reasons for the exorbitant rise in healthcare costs?

According to the following infographic, the seven most significant causes for increasing healthcare costs are:

Healthcare spending in the U.S. has been growing relentlessly over the last decades, becoming one of the major contributors to the nation’s long-term fiscal deficit. In 2011 alone, the U.S. spent 2.7 trillion dollars on healthcare, amounting to almost one-fifth of the total economy. Even more alarming is the fact that healthcare spending is growing 1.5 times faster than the country’s GDP. So, what are the reasons for the exorbitant rise in healthcare costs?

According to the following infographic, the seven most significant causes for increasing healthcare costs are:

  1. New medical technology
  2. Provider price inflation
  3. Low primary care use
  4. High spending on specialists
  5. Aging population
  6. Increase of chronic illnesses
  7. Fraud

These factors are responsible for driving health insurance premiums up remarkably. For a more detailed description of these factors and concrete examples of how they affect premiums, view the infographic below.

Health Insurance questionsSource: Carrington

Related posts
Health carePolicy & Law

What happens when an inmate goes to the hospital?

2 Mins read
Healthcare is an important aspect of prisoner welfare in the US and indeed those who are incarcerated have a right to receive…
BusinessFinance

Secure Your Healthcare Company's Online Presence While Working From Home

2 Mins read
Working from home has become the new norm for quite some months now, even for some healthcare employees. That is after the…
Medical EducationPolicy & Law

Why Refinancing Medical School Lending Makes Sense

2 Mins read
Once you graduate from medical school you probably assume your financial situation will improve dramatically. While it is true that you will…