Many of my clients who have California Medical insurance plans are always asking me why their premiums are always rising. While there isn't one easy answer I'd like to take a minute and give you some insight on why premiums continue to rise.
One of the number one reasons is provider facility upgrades. Many hospitals have spent the last several years upgrading the facilities and they will continue to do so. Whether it is California code updates on new medical wings being added to existing facilities the cost just keep piling up. Every time hospitals in Fresno adds up grades the cost has to be passed along to someone and it usually trickles down to the California Medical insurance companies and then to the consumer.
Another reason is new technologies that a very costly. With each generation of individual medical devices such as stents, artificial hips, etc. the more advanced they become the more expensive they are to develop. While new medical technology great enhances the quality of life for many Americans it comes at a price that is often hard to swallow.
Yet another reason cost keep rising is the cost of medications. From 2004 to 2007 the 122 most commonly prescribed medications rose nearly 14% soundly beating inflation.
And finally the last reason of this article is ineffective healthcare. According to the Congressional Budget Office, up to one-third of the 2.3 trillion spent annually on health care nationwide ' more than $700 billion ' does not improve America's health outcomes.
As you can see it's a combination of things as to why premiums continue to rise at a staggering rate. And now with the recent reform being passed requiring companies to provide more first dollar coverage benefits cost will continue to rise even further. So if you are currently on a California Medical Insurance plan don't expect to see the trend of rise premiums to stop any time soon.
About the Author:
Adam Sepulveda
Adam Sepulveda is the owner of Fresno Health Insurance Services a leading resource in California Medical Insurance. Click here to get free California Medical Insurance quotes Today!