A recent study by PricewaterhouseCoopers examining the drivers of rising health care costs in the U.S. pointed to increased utilization created by increased consumer demand, new treatments, and more intensive diagnostic testing, as the most significant.[13] People in developed countries are living longer. The population of those countries is aging, and a larger group of senior citizens requires more intensive medical care than a young healthier population. Advances in medicine and medical technology can also increase the cost of medical treatment. Lifestyle-related factors can increase utilization and therefore insurance prices, such as: increases in obesity caused by insufficient exercise and unhealthy food choices; excessive alcohol use, smoking, and use of street drugs. Other factors noted by the PWC study included the movement to broader-access plans, higher-priced technologies, and cost-shifting from Medicaid and the uninsured to private payers.[13]
Other researchers note that doctors and other HCPs are rewarded for merely treating patients rather than curing them and that patients insured through employer group policies have incentives to got to the absolute best HCPs rather than the most cost-effective ones.[14]
Yes there are so many factors that directly affects the insurance prices. But there are few on the part of the customer that can be controlled to lower down the policy rate like having a healthier life style, buying a group plan for the family and many more that adds to a cheaper policy option.
ReplyDeletecommercial insurance