Why is Health Insurance So Expensive?

Americans are concerned about the rising cost of healthcare. Every year, it seems, more money is coming out of their paychecks to cover insurance premiums. But why are those premiums on the rise? The answer is quite different than the conventional wisdom you might be familiar with.

  • RETHINK: Did you know that just three cents of every dollar spent on health insurance goes to insurance company profits? It’s true—turns out, most of the money we spend on insurance goes to cover the cost of hospital or physician services. Insurance costs are going up, but it’s being driven by factors like an increase in the cost of the services we’re spending our dollars on.  Learn more here.
  • REFORM: While the healthcare law was passed with the intention of reducing healthcare costs, just the opposite is happening. Premiums in the individual market were up nearly 5 percent last year due to new regulations in the law. They’re projected to be even higher in the future as a consequence of taxes, fees, and regulations in the Affordable Care Act. Learn more here.