Health insurance premiums climb faster in 2011

From Reuters:

The cost of health insurance continues to climb for companies and workers, with annual family premiums this year growing at a pace triple that of 2010 and outpacing wage increases, according to a survey.

As the United States continues to grapple with a stubbornly weak economy, family premiums in employer-sponsored health plans jumped 9 percent this year and single premiums rose 8 percent, compared with 2010's 3 percent and 5 percent, the Kaiser Family Foundation's annual study, published Tuesday, found.

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Health insurance premiums climb faster in 2011 | Reuters

For those who are interested, the complete study can be found at: http://ehbs.kff.org/pdf/2011/8225.pdf

This continuation of the persistent trend under which annual increases in health costs exceed increases in national income illustrates anew the basic flaws in the U.S. health care system as it currently exists. Unless the systemic supply- and demand-side issues are addressed responsible for the U.S. system's excessive cost growth problem, health costs could continue to rise at a rate faster than national income on account of the aging of the U.S. population. Over time, foreign lenders will likely become less inclined to help finance the system's costs via U.S. government funding, especially if the federal government fails to develop a credible fiscal consolidation program.

Once again this shows how the U.S. government is not in a position to aide in this problem, and as always has only contributed to the problem. The Obama health care plan, enacted well over a year ago has had no bearing in curbing health care costs or the reduction of benefits of many under current health care plans. We have indebted ourselves nearly a trillion more but have had no positive outcome from the new national health care plan. ONLY when we get back to competetive pricing and competition will our HC problems begin to lessen. As with any other government involvment, lack of competitiveness and competition only creates more monopolies than it is meant to solve. Beyond that, it is becoming glaringly apparent that the HC government plan is not a real plan to help the under or middle class but was a bone to the pharmacuteacal and other HC industries. HC insurance has basically not been touched, as they have been allowed to continue to deny claims an increase prices. Without real competitive pricing, this problem will always continue. It will alway continue to worsen. Removal of this ridiculous program and allow the the free market to do its thing is the answer to HC, as it is the answer to any succesful endeavor the U.S. has ever achieved... Through private enterprise.

A massive dose of consumerism in the HC market is our only cure. If we really want to fix that industry we have to make the pricing and outcomes data transparent, which will create a considerably more competitive marketplace. More competition flocking to those providers that offer the biggest bang for the buck will be the catalyst to lowering the costs. BOCare is going in the just the opposite direction.

Completely unsustainable. Something has to give.

They're trying to milk Americans for all we're worth while they can. If they already have record profits each and every year, then it's not about the cost of doing business anymore as they are not and never have been at the point of losing money. It's pure greedy that keeps prices going up year after year.

Tettsuo said:

They're trying to milk Americans for all we're worth while they can. If they already have record profits each and every year, then it's not about the cost of doing business anymore as they are not and never have been at the point of losing money. It's pure greedy that keeps prices going up year after year.

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Well thats not true in all cases.

For instance lets say I spend $100 million to get a product out. The next 10 years I spend only $100,000 a year and get $2 million in profits each year, I may be making record profits but I'm not anywhere close to getting my initial investment back.

Not saying this happens everywhere either.

TheNextEra said:

Well thats not true in all cases.

For instance lets say I spend $100 million to get a product out. The next 10 years I spend only $100,000 a year and get $2 million in profits each year, I may be making record profits but I'm not anywhere close to getting my initial investment back.

Not saying this happens everywhere either.

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Health insurance is a middleman. That's all. They do not spend money to produce any goods or services, they simply facilitate payment of services provided for the cost of a monthly fee. Your example would be perfect for a company that creates a good (like big pharm).