Why Does Health Insurance Cost So Much?

Why does health insurance cost so much? Year after year, many of the articles that appear in print detail the specific factors driving the cost of healthcare.

These factors include: general inflation, advances in drugs and other medical devices, rising hospital and doctor expenses, government mandates, increased consumer demand, litigation, fraud, and cost shifting.

The basic answer is that a magic bullet to solve the cost of insurance does not exist because the real difficulty is controlling the cost of healthcare. A simple way to dramatically decrease the dollars spent on healthcare is to reduce the demand for healthcare.

I have seen estimates that up to 40% of all healthcare related expenses result from preventable conditions. These preventable conditions are caused by lifestyle choices such as tobacco, obesity, stress, lack of exercise and poor diet.

Most of us, myself included, make lifestyle choices everyday that eventually increase our demand for healthcare. We are never going to be able to totally eliminate all lifestyle related healthcare costs. However, improved lifestyle choices would cause a dramatic reduction in demand. This would then result in a similar reduction in the dollars spent on healthcare.

Lower demand for healthcare would result in lower health insurance costs, increased productivity, and reduced absenteeism. If your organization has not done so already, your organizational leaders need to seriously consider the benefits of health promotion and disease prevention programs. Your return on investment will most likely be as high as 2:1 in the first year.

Michael Ertel is the President of Ertel & Company, Inc. and has over 15 years of experience in the health insurance business. He is the founder of MedicalInsuranceNow.com which is an internet based service that assists individuals, families, and small business owners by providing side by side comparisons of health insurance alternatives and the convenience of applying for health coverage online.



Gain An Advantage Over Your Competition By Controlling The Cost Of Your Health Insurance

As many of us expect, the New Year will bring... Read More

Finding Life Insurance Quotes For Adult Children

Shopping for life insurance quotes for adult children isn't any... Read More

Car and Home Insurance Northern Ireland

Don't skimp on insurance. This probably doesn't sound like a... Read More

Discount Auto Insurance

Whether you are looking for car insurance in Canada, the... Read More

Student Possessions Insurance - Insuring the Contents of Your Room

In the UK each September, 350,000 new students embark off... Read More

Choosing Long-Term Care Insurance

A little over sixty percent of the folks who reach... Read More

Are You Running the Risk of an Uninsured Business? Beware & Get Business Insurance

Human life is precarious and so are the activities they... Read More

Give Your Auto Policy a Tune-Up

When you originally purchased your auto insurance policy, you purchased... Read More

Online Insurance: The End of the High Street Broker?

When I was a lad, some 25 years ago, the... Read More

What Is Term Life Insurance?

There are two different types of life insurance, term life... Read More

How To Best Handle Health Insurance Plan Changes

Many economists have suggested and recent economic data indicates that... Read More

Insurance or Assurance - Do You Need Reassurance?

Insurance versus assurance: what is the difference?Should you care?Yes!!The world... Read More

Guide to Car Insurance

Here is a useful guide to car insurance. Buying car... Read More

Long Term Care and Long Term Care Insurance

A person might need long term care (LTC) if he/she... Read More

Insurance for Those Who Run Bed and Breakfast Properties

A Bed and Breakfast, often referred to as a B&B,... Read More

Life Insurance Fears Post the London Bombings Tragedy

Following on from the tube train and bus bomb attacks... Read More

Senior Health Care Insurance

Health Insurance For Seniors On The NetWhen a good friend... Read More

Affordable Life Insurance!

So, you've decided to purchase life insurance. Well then, you... Read More

Homeowners Insurance Coverage

When deciding on the appropriate amount of homeowner's insurance coverage... Read More

Health Insurance Options for Entrepreneurs

One of the most important benefits employed people enjoy is... Read More

Individual or Family Health Insurance Options

As more and more individuals working at home with or... Read More

Life Insurance Information

Life insurance is a personal insurance plan designed to pay... Read More

7 Tips Toward Helping You Reduce Your Insurance Costs

Not a year goes by that insurance rates go up.... Read More

Discount Auto Insurance - Get Low Rates And Superior Coverage

Auto insurance rates can be quite expensive. If you are... Read More

How to Reduce Home Insurance Premiums

Here are some useful tips on how to reduce Home... Read More

If you'd like to keep up-to-date,
please complete the form below and we'll put you on the mailing list
to receive our twice-yearly newsletter for supporters

* Your email address:
* choes your language: