Higher medical costs increase premiums
Dr. Michael Seeber’s letter (Jan. 14) cited his frustrations at the premium increase quoted for his employees, asking “Where are the insurers’ increased costs?”
The answer is relatively simple: increased medical costs make insurance premiums rise.
While it is true the overall economy has a low rate of inflation, medical costs continue to climb at a much greater rate. This is partly driven by the increased prices medical professionals, health care facilities and drugmakers demand. Additionally, rates increase for other reasons, including groups’ claims experience, prevalence of obesity and reform-mandated dependent coverage.
Unfortunately, because health plans must account for all of these factors in their premiums, we often get most of the blame for what health care costs.