I just got my renewal quote: $2,372/month for a family of 4 is going to $2,883/month. That's a ~20% increase, to $34,595 PER YEAR.
(And this is while benefits continue to be cut back: $150/month for many prescriptions, etc.)
As others have written, there's no single reason. But, I think there's a major unintended structural problem: under US law, insurance companies are required to pay a high percentage (like ~90%) of their premiums out to service providers. The intent is to cut administrative overhead.
The effect: it's very hard for an insurance company to invest in technology or administrative improvements. So, the status quo persists.
WORSE, the admin overhead is pushed onto the providers, so the overhead cost gets hidden. It's not uncommon for a family medicine general practitioner to have a back office of 3-5 people dealing with billing and insurance paperwork.
> WORSE, the admin overhead is pushed onto the providers, so the overhead cost gets hidden. It's not uncommon for a family medicine general practitioner to have a back office of 3-5 people dealing with billing and insurance paperwork.
My old doctor from when I was a baby till he retired had a practice with three to four other doctors. They had a nurse and one of the doctors wives did all the office work, billing, and answering phones. Current doctors practice has two doctors, four nurses, and eight office staff.
Old doctors office could would take x-rays and set a simple fracture. Or stitch up a simple cut. New doctor won't do any of that.
(And this is while benefits continue to be cut back: $150/month for many prescriptions, etc.)
As others have written, there's no single reason. But, I think there's a major unintended structural problem: under US law, insurance companies are required to pay a high percentage (like ~90%) of their premiums out to service providers. The intent is to cut administrative overhead.
The effect: it's very hard for an insurance company to invest in technology or administrative improvements. So, the status quo persists.
WORSE, the admin overhead is pushed onto the providers, so the overhead cost gets hidden. It's not uncommon for a family medicine general practitioner to have a back office of 3-5 people dealing with billing and insurance paperwork.