Decreased use of healthcare has driven up insurance company earnings, potentially tempering the increase of premiums for consumers, according to an ABC News report.
Analysts and industry observers say consumers tend to postpone elective surgeries following a recession, slowing the growth of healthcare utilization. Insurers consider consumer use trends when determining how much they will need to collect in premiums to cover claims costs, and employers can cite decreased use when they negotiate the prices of the plans that cover their workers.
Decreased use does not mean that premium prices will drop; rather, experts believe rates will stay stable over the next several years as consumers recover from the recession. Others believe premiums will keep rising, but more slowly than in the last several years.
Premiums on employer-sponsored insurance climbed 3 percent for family coverage and 5 percent for individuals last year, according to a study from the Kaiser Family Foundation and Health Research and Educational Trust. In individual markets, premiums for some policies have risen more than 10 percent in the last few years.
Read the ABC News report on healthcare premiums.
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Analysts and industry observers say consumers tend to postpone elective surgeries following a recession, slowing the growth of healthcare utilization. Insurers consider consumer use trends when determining how much they will need to collect in premiums to cover claims costs, and employers can cite decreased use when they negotiate the prices of the plans that cover their workers.
Decreased use does not mean that premium prices will drop; rather, experts believe rates will stay stable over the next several years as consumers recover from the recession. Others believe premiums will keep rising, but more slowly than in the last several years.
Premiums on employer-sponsored insurance climbed 3 percent for family coverage and 5 percent for individuals last year, according to a study from the Kaiser Family Foundation and Health Research and Educational Trust. In individual markets, premiums for some policies have risen more than 10 percent in the last few years.
Read the ABC News report on healthcare premiums.
Related Articles on Health Insurance:
WellPoint, Aetna Shares Fall Despite Beating 2Q Earnings Predictions
Seniors on Medicare Drug Plan Save Around $12K Annually
Missouri Stalls on Health Insurance Exchange Bill as Legislative Session Ends