Why is health insurance so expensive?

January 26, 2016

Share on FacebookGoogle+Tweet about this on TwitterEmail to someone
Lead Copywriter

There are many factors that make health insurance costly, including administrative costs and rising costs in medical care and drugs.

Here is a breakdown on why insurance is so costly:

Health care is so darn expensive. Hospital stays, surgeries, medical tests, prescription drugs….all of these things cost a ton of money. And the costs keep going up, unfortunately.

Insurance companies have to be solvent, meaning they need enough money in the bank to be able to financially cover every person who has purchased a plan through their company.

Insurance companies have to give advanced payment for your preventative care. A qualified health plan has to 100% cover your preventative care and wellness checks.

Health insurance providers have to share the cost of preexisting conditions. Due to the Affordable Care Act ruling, no one can be turned away from getting health insurance due to a preexisting condition. This means the cost is distributed to everyone.

Insurance companies have to pay staff, agents and brokers. (And unfortunately, like any business, there are often inefficiencies due to overstaffing, business processes, etc.)