Why Does Health Insurance Cost So Much?

Written by Kevin MabryHealthcare, HIPAA


Why Does Medical Health Insurance Cost A Lot?


How come medical health insurance cost a lot? Every year, most of the articles that come in print detail the particular factors driving the price of healthcare.

These 4 elements include: general inflation, advances in drugs along with other medical devices, rising hospital and physician expenses, government mandates, elevated consumer demand, litigation, fraud, and price shifting.

The fundamental response is that the quick fix to resolve the price of insurance doesn’t exist since the real difficulty is controlling the price of healthcare. A great way to dramatically reduce the dollars allocated to healthcare would be to lessen the interest in healthcare.

I’ve come across estimates that as much as 40% of healthcare related expenses derive from avoidable conditions. These avoidable conditions come from lifestyle choices for example tobacco, weight problems, stress, loss of focus and poor diet.

The majority of us, myself incorporated, make lifestyle choices everyday that eventually increase our interest in healthcare. We’re never going so that you can totally eliminate all lifestyle related healthcare costs. However, improved lifestyle choices would result in a dramatic decrease in demand. This could then create a similar decrease in the dollars allocated to healthcare.

Lower interest in healthcare would lead to lower medical health insurance costs, elevated productivity, and reduced absenteeism. In case your organization hasn’t done this already, your business leaders have to you should consider the advantages of health promotion and disease prevention programs. Your roi will likely be up to 2:one in the very first year.


CEO, Author of the #1 Risk to Small Businesses

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