why medical care plan premium increase over year ? (Hmo and PPO)

why medical care plan premium increase over year ?

(Hmo and PPO)

Expert Solution

Followings are the reasons for which medical care premium increases over the years-

High out of pocket expenses arises for the policy holders due to high deductible family health plans.
Growing population is the main reason for high premiums. Because 50% of increased health care expenses comes from increase cost of services.
Rise in outpatient hospital services like- ambulance cost, surgery expenses will enhance the medical premium plans.
Government policy and regulations regarding Medicare and medicaid will increases the insurance cost in united states of America. Because these programs are initiated to provide insurance benefits to those who don't have any insurance plans. So that the demand for health care services increases.
Bailing out of many insurance companies is also the reason behind high insurance premium costs. Because there will be no competition among the partners. Hence monopoly market drives more cost for premium.
Both HMO & PPO provides low deductibles and low co-payments. Hence there will be high premium cost for the insurers.

jeff jeffy answered 1 year ago

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