- Health insurance premiums track the costs of doctor visits, prescription drugs and hospitalizations. High health insurance rates are a consequence of high prices for health care.
- Technological advances have led to increased health care costs. Patients are undergoing expensive procedures to diagnose diseases and extend their lives. In addition, pharmaceutical companies, such as Pfizer, invest billions of dollars annually into research and development to create blockbuster drugs. These costs are passed onto consumers---with higher insurance premiums.
- Insurers charge higher premiums as compensation for increased risks. Older applicants with weak medical histories pay higher rates for health insurance. Further, rates increase as deductibles fall. Insurance deductibles identify your out-of-pocket costs, before insurers pay claims.
- Health insurers do not approve all applicants at any cost. The terminally ill are often uninsurable because they would generate large business losses.
- Many consumers forgo health insurance coverage because of its expense. Failing health, large medical bills and bankruptcy may occur for lack of insurance.
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