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Another Increase in Health Premiums

Dr. West Conner

The health industry's main lobbying group, America's Health

Insurance Plans, reports that medical premiums increased 8.8%

between 2004 and 2005. The lobbying group claims this is good

news since the actual premium rate of growth has continued to

slow from a rate of more than 13% in 2002. The increase in

health premiums is reportedly most likely due to the increased

use of doctor and hospital services.

The accounting firm, PriceWaterhouseCoopers, reports that just

14% of the increase had to do with administration or marketing

costs or higher insurance profits. According to the Kaiser

Family Foundation, an average health care plan obtained through

an employer in 2005 approached $11,000. The average annual cost

for the worker was approximately $3,500 plus deductibles and

co-pays.

Employers are currently shifting more and more of the health

care costs to their employees. Studies show that employers

decreased health care spending by 1.3%, while employees

increased spending by 5.5%. "What we're aware of is that health

care costs," says Judy Feder, PhD, dean of the Public Policy

Institute at Georgetown University, "even when they slow down,

are still outpacing peoples' income and ability to pay."

The trend of increasing costs of health care does not seem to be

slowing down. With baby boomers now into their sixties, these

costs will certainly continue to rise. Health care costs are

taking a larger chunk out of everyone's budget.

Prescription drugs price increases are outpacing the growing

medical premiums by almost two-fold. Controlling drug costs is

one of the simplest ways to lower overall health care spending.

Using generics as often as possible, utilizing less expensive

over the counter medication, and shopping around for lower

prices are three quick and easy ways to lower these costs. Even

small savings, done over and over, will soon add up to a

significant reduction in your expenses at the pharmacy.

For more free information, free articles, and free newsletter,

go to www.rxcostcutters.com

About the author:

Dr. West Conner is the author of the incredibly popular workbook

"How To Save Money On Your Prescription Drugs" and the audio CD

"Are You Spending Too Much On Your Prescriptions?" Through his

many years of practice, He has developed a number of unique and

creative ways to lower prescription costs. Visit

www.rxcostcutters.com

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