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Not only has the cost of medical care been on a steady increase over time, but so has the cost of health insurance. Like most other things in life, the cost of health insurance inevitably and reliably rises as time passes, increasing the financial burden on American households.
In 2020 alone, the cost of group health insurance premiums was $21,342 for an average family policy, marking a 4% increase from the year before. According to the Centers for Medicare and Medicaid Services (CMS), it’s estimated that health spending will grow 5.5% every year on a national level until 2027. Eventually, healthcare spending will reach $6 trillion.
The question is, why? What is causing these increases in costs?
Six out of 10 adults in the US have been diagnosed with a chronic medical condition such as heart disease, diabetes, and asthma. Even worse, four out of six adults have at least two chronic illnesses. Combined with aging, these chronic diseases are fueling the increase in medical costs. Further, a whopping 42% of adults in the US are obese, which has resulted in an estimated additional cost of $147 billion per year.
The cost of pharmaceuticals is climbing rapidly, which is contributing to a rise in healthcare expenses. From 2015 to 2019, the median cost for generic medication jumped 37.6%.
It is very difficult for consumers to compare the various costs in healthcare because of the lack of transparency regarding prices in the industry. Discovering and understanding the different treatment options available and their associated costs can be a real challenge.
Instead of being rewarded based on patient outcomes, medical professionals are often paid on a fee-for-service basis. That means the more patients they see and the more tests and procedures they order, the higher their pay. This model of provider reimbursement may be one of the contributing factors to the steady rise in healthcare costs that inevitably get passed on to consumers.
Health insurance providers are in a position to have to control costs to be able to provide coverage to more people. Unfortunately, consumers are finding themselves with fewer options, a limited number of plans to choose from, and a reduction in access to their preferred healthcare providers.
Fortunately, Americans don’t have to be limited in their options to manage healthcare costs if they are willing to think out of the box. Health sharing ministries have emerged as a viable option.
Health sharing plans provide more affordability, flexibility, and freedom than conventional health insurance policies. Furthermore, members of health sharing have the opportunity to help their fellow neighbors while helping themselves.
