Healthcare Spending vs Premium Increases

by admin on August 21, 2012

The following 2 articles clearly illustrate a disturbing trend in the cost of healthcare vs healthcare spending worldwide. The first article, One Frightening Statistic on Small Business Health Insurance shows clearly that, in the US, “since 1999 the average cost of employee health insurance premiums (for family coverage) has risen 84 percent in inflation adjusted terms (148 percent in nominal terms).”

Annual small business healthcare premium

The second article, Health-care spending, from the Economist, shows an entirely different trend indicating that in the US and, in fact most countries across the globe, the actual amount spent on healthcare has increased only by a “a real annual average of 4.8% between 2000 and 2009”, with numbers in the US showing an increase of only 4.2%.

global healthcare spendin

The disparity between spending and premium increases clearly displays the faults inherent in the current Private Medical Insurance industry. Poor claims management, bloated administration costs and a responsibility to shareholders rather than policy holders have all been steadily driving up premium costs under the guise of ‘medical inflation’. The victim of course is you the consumer.

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