The US health insurance premium increase differs widely and always surpasses wage increases and general inflation. During 2000 to 2006, premiums collectively increased 87 percent and inflation shoot-up 18 percent whereas wages grew 20 percent as per the Kaiser Family Foundation’s Employer Health Benefits 2006 Annual Survey.
Notably, the 2008 survey reveals that when premiums increased a "humble 5 percent," they have almost twice increased since 1999. During this time period, wages increased 34 percent and inflation rose 29 percent.
The United States spent 16 percent of its gross domestic product on healthcare in the year 2007, and the same is poised to reach 20 percent come 2015.
Mammoth Problems and the Quest of Disruptive Solutions
A view of the US healthcare financing crisis: Among the trillions spent in healthcare spending, insurance companies channel hundreds of billions of dollars to contend for market share, and they aim at increasing profits for shareholders whereas they control costs by disallowing claims. This is coupled with the want of the best treatments for all our illnesses, despite of the cost factor involved. Also, the 47 million uninsured shift their healthcare costs to taxpayers and the insured population.
The consumer advocates consider the insurance industry as a primarily reason of price increase of healthcare. However, insurers and consultants claim that free markets and consumerism can rescue healthcare from rising costs.
State and Federal Measures
Still many private insurers opine that the government should play a role in controlling healthcare costs. Many states, like Massachusetts and California, have devised health insurance reforms that aim at covering just about every resident.
Health plans would want to serve up the uninsured and underinsured, unlike the states wanting to sell what is not affordable by the consumers.
Since paying premiums, co-payments and deductibles can introduce personal insolvency employer-sponsored health insurance lacks to be a complete solution.
