The United States’ high-priced health care system, which includes health care and insurance, affects everyone, sick or well. It has reduced individual spending power for several decades. Salaries for American workers have risen, but net pay has stayed the same because of increasing charges for health insurance.
So, what exactly makes the health care system in the U.S. so expensive? It depends on who you are asking.
Doctors and hospitals blame the health insurance industry and if you ask someone in the insurance industry, they blame the physicians and prescription drugs. In reality both sides play a role in the high cost.
Below are just a few reasons for the high cost of health care in the United States.
This barely scratches the surface on what makes our health care system so expensive.
It is even more expensive for small groups. An insurer determines a premium price based on risk factors balanced over the entire group, such as age or gender. In addition, small businesses often pay more for employee health benefits because they don't have the buying power of big employers. Health coverage providers may charge different premiums to small employers based on the industry of the employer or on the employer’s prior health claims.
As both workers and small employers feel the financial squeeze, fewer are able to offer, or purchase, health insurance coverage.
We know what the problems are but how do we begin to fix the problems and lower the cost of health care? Direct Primary Care (DPC) and Level-Funded health plans are both good, new alternatives.
The DPC movement is growing as more primary care physicians opt out of working with insurance plans. Doctors take a set monthly fee and provide unlimited primary care to individuals and families without insurance coverage being either a barrier or a factor in the care they provide. Improvements in both quality of care and access to care can be dramatic. Some health insurance plans provide DPC “wrap” coverage to provide insurance for things a DPC can’t provide – but at substantial savings to a traditional health plan.
Level-Funded plans are a type of health benefit plan that combines the cost savings and customization of self-funding with the financial safety of a fully-insured plan. Level-Funded plans are exempt from many Affordable Care Act regulations so plan designs can be more flexible and therefore, more affordable.
Founded in 1970, Allied is one of the nation's oldest and most experienced third-party administrators. Allied National is a 90 Degree Benefits Company, a subsidiary of Blue Cross Blue Shield of Alabama. As the small group benefit experts, Allied works with small business employers to provide unique and affordable group health benefits.
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Allied National is a 90 Degree Benefits Company, a subsidiary of Blue Cross Blue Shield of Alabama. Founded in 1970, Allied National is one of the nation's oldest and most experienced third-party administrators. We're the small group benefit experts working to provide unique and affordable group health benefits to small business employers.