Florida Health Insurance Rate Hike
Florida Health insurance premiums have touched new heights! Every Floridian has the common knowledge that most annual health insurance contracts will endure a rate increase at the end of the year. This trend is not new and should be expected. Every time this issue pops up, it seems as though the blame game starts. Floridians blame Health insurance companies; Health insurance companies blame Hospitals.
Doctors and other medical care providers, Medical care providers blame inflation and politicians; well, we really don’t know what they do to help the issue… No one seems to be interested in finding the real cause of the health insurance premium rate increase. Most individuals, self-employed, and small business owners have taken Florida Health Insurance Rate Hikes as the inevitable evil.
What are various reports telling us? Why does Health insurance premium have annual rate increases?
Rate of inflation and heath insurance premium rate increase.
America’s health expenditure in 2004 has increased dramatically; it has increased more than three times the inflation rate. This year, the inflation rate was around 2.5%, while the national health expenses were around 7.9%. The employer health insurance or group health insurance premium had increased approximately 7.8% in 2006, which is almost double the rate of inflation.
In short, last year in 2006, the annual premiums of group health plan sponsored by an employer was around $4,250 for a single premium plan, while the average family premium was around $ 11,250 per year. This indicates that in the year 2006, the employer-sponsored health insurance premium increased 7.7 percent. Taking the biggest hit were small businesses that had 0-24 employees. Their health insurance premiums increased by nearly 10.4%
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Employees are also not spared; in 2006, the employee also had to pay around $ 3,000 more in their contribution to the employer’s sponsored health insurance plan compared to the previous year, 2005. Rate hikes have been in existence since the “Florida Health Insurance” plan started. In covering an entire family of four, a person will experience an increase in premium rate at every annual renewal.
If they kept the record of their health insurance premium payments, they would find that they are now paying around $ 1,100 more than they paid in 2000 for the same coverage and with the same company. The same item was found by the Health Research Educational Trust and the Kaiser Family Foundation in their survey report of the year 2000.
They found out that the premiums of health insurance sponsored by the employer increase by around 4 times than the employee’s salary. This report also stated that since 2000, employees’ contribution to group health insurance sponsored by employers was increased by more than 143 percent.
One businessman predicts that if nothing is done and the Health insurance premiums keep increasing that in the year 2008, the amount of health premium contribution to employer will surpass their profit. Professionals within and outside the field of Florida health insurance think that the reason for the increase in Florida health insurance premium rates is due to many factors, such as high administration expenditure, inflation, poor or bad management, increase in the cost of medical care, waste, etc.
Florida health insurance rate hikes affect whom?
Rising rates of Florida health insurance generally affect most of the Floridians who live in our beautiful state. The highest affected individuals are the minimum wage and low-wage workers. Recent drops in the renewal of health insurance are mostly from this low-income group. They can’t afford the high premiums of Florida health insurance. They are in a situation where they can not afford medical care, and they can not afford the medical insurance premiums associated with adequate coverage.
Almost half of all Americans believe that they are more worried about the high health insurance rate and high cost of health care over any other bill they have every month. A survey also finds that around 42% of Americans can not afford the high cost of health care services. Harvard University researchers conduct one fascinating study.
They found out that 68% of people who filed for bankruptcy covered themselves and their families with health insurance. Average out-of-pocket deductibles for people filed bankruptcy were around $ 12,000 per year. They also found some correlation between medical expenditure and bankruptcy. A national survey also reports that the main reason for people not to take health insurance is the high premium rate of health insurance.