Florida’s premiums for health insurance have risen to new heights. All Floridians know that the majority of annual health insurance contracts will see a rate rise at the end the year. This is not a new trend and should be expected. It seems like everyone is playing the blame game every time this issue comes up. Floridians blame their health insurance companies. Health insurance companies blame hospitals, doctors, and other medical providers. Medical care providers blame inflation. No one seems interested in finding out the true cause of the increase in premiums for health insurance. Individuals, small- and medium-sized business owners, have accepted Florida Health Insurance Rate Hikes to be an inevitable evil.
The Hard Truths
What do different reports tell us? What is the reason that health insurance premiums have an annual rate increase?
Inflation rate and heath insurance premium rates increase.
The 2004 increase in America’s healthcare expenditures has been dramatic. It has more than tripled the inflation rate. The inflation rate in this year was 2.5%, while the national health expenditures were 7.9%. In 2006, the premium for employer-sponsored group health insurance had increased by 7.8%. This is nearly twice the inflation rate. The average family premium was $ 11,250 annually, and the annual premiums for group health plans sponsored by employers was $4,250 in 2006. This means that the average premium for employer-sponsored health insurance rose 7.7 percent in 2006. Small businesses with 0-24 employees took the most severe hit. The premiums for health insurance rose by almost 10.4%
Employees are not exempt from the cost. In 2006, the employee had to contribute $ 3,000 more to their employer’s health insurance plan than in 2005. Since the inception of Florida Health Insurance, rate hikes have been a part of life. A person who covers a family of four will see a rise in their premium rate with each annual renewal. They will discover that their premium payments for health insurance are approximately $ 1,100 higher than what they paid in 2000. This is for the same coverage, with the same company. In their 2000 survey, the Kaiser Family Foundation and Health Research Educational Trust found the same thing. The employer sponsored health insurance premiums increase by approximately 4 times the salary of the employee. The report stated that the employer has increased employee contributions to group health insurance by more than 143 per cent since 2000.
One businessman predicts that if nothing happens and the health insurance premiums continue increasing, that the employer’s contribution to the premiums will exceed their profit in 2008. Experts in and out of the Florida insurance industry believe that Florida’s rise in health insurance premiums is due to a variety of factors. These include inflation, high administration costs, poor or inept management, increased medical care costs, waste, and other factors.
Who is affected by Florida’s rate increases on health insurance?
Most Floridians living in Florida are affected by rising rates of Florida insurance. Low-wage workers and those earning minimum wage are most affected. These low-income individuals are the ones who have seen the most recent declines in health insurance renewals. They simply cannot afford the high premiums for Florida health insurance. They find themselves in a situation where they cannot afford to pay for the necessary medical care. Nearly half of Americans believe that the high cost and high rate of their health insurance is more important than any other monthly bill. Another survey found that 42% of Americans cannot afford high-cost health care services. Harvard University researchers conducted an interesting study. The Harvard University researchers found that 68% of bankruptcy filers had health insurance. People who filed bankruptcy had an average out-of-pocket cost deductible of $ 12,000 annually. There was also a correlation between bankruptcy and medical expenses. National survey results also revealed that the main reason people don’t take out health insurance is because of the high premiums.
How can you lower Florida’s high cost of health insurance? No one knows the answer. Experts and others may have different opinions. According to health professionals, if we can improve the quality of life and encourage regular exercise, healthy diets, etc., then it will be possible to increase the number of people who are in good health. They will naturally require less medical care, which in turn reduces the demand for health care and the associated costs. Florida’s smoking rate increased 21.7 percent in 2018. One Floridian joked that there are “highs” and “lows” in health care. This needs to be reversed. The state of Florida has a high cost of medical care compared to other States, and low quality health care.