Health insurance price
The health insurance price in U.S. is rising with no limits that the common man under the age of 65 who was spending just 37.3% of his salary in 1996 is forced to spend 43.1% by 2003 which indicates a 16% rise. For the period from 1999 to the present day, while the wage increase was only 29%, the increase in the health insurance price was around 44%. It is almost equal to 4.3 times of the amount which the federal government spends for its defence requirements.
The $2.4 trillion health insurance price paid by the nation in 2008 is estimated to go up to $4.3 trillion by 2016. This amount correlates to 20% of the nation's estimated GDP figures for 2016. For the same period, Switzerland is estimated to spend 10.9% of its GDP, Germany - 10.7%, Canada - 9.7% and France - 9.5%. Needless to say, U.S is spending far higher health insurance price than any other nation owing to the fast growing administrative cost components in this sector.
The obvious reasons for such inflated health insurance price are the sector inefficiencies, lack of proper management, impatience in administrating proper health coverage programs and greed. One noticeable point in this matter is that even though the costs are rising, the correlating service in terms of policy coverage is deteriorating day by day that there is no satisfaction from the customer's point of view that his financial doubts after any contingency are not fully answered. In addition to these, there are many famous institutions like the state farm insurance wherein the policy takers are forced to initiate revolution for just receiving their legitimate policy amount in case of any contingency.
Observing these trends, 46 million Americans are just putting themselves out of all this trouble. They are just staying uninsured. Those who are insured are largely employees meaning their health insurance price is paid by their employers for whom the profit figures are strained due to rising insurance prices. A study found that 68% of the bankruptcy filings from the firm's category have been patronizing health insurance for their employees and bankruptcy filings for which health insurance price is a cause is a whopping 50% of the total filings. Even during the last two years when there was a sub-prime crisis due to losing equity of the houses, 25% of the3 foreclosure and bankruptcy cases mainly mentioned health insurance price as the major component of their expenditure and as such could not service the debt payments on time.
The fed on the other hand though agrees that the health insurance price is escalating without leaps and bounds, it is not drawing any clear strategies to control such a rise. Its argument is that if all the remaining 56 million Americans who are uninsured are also drawn towards insurance, naturally the running costs of the insurance companies comes down because of large scale economies and as such, controlling would be done on its own. But, little does one realise that these 56 million people who could not be convinced for any reason till now will not be willing to enter into any insurance contract unless and until the health insurance price is reduced, the health insurance being the primary coverage for the sector as a whole.
Now, in between these both non-convincing parties, what should the insurance companies do? They are happy to note that there is still a scope of market growth because so many innumerable people are still uninsured and they just need to hone their marketing talent to tap these uninsured candidates. But in the race for such improvement of standards, they are employing further salesmen and marketers thereby increasing their running costs even more, forget about roping in new clients. Now these increased costs are naturally borne by the already existing customers in the name of dubious charges which the customers may hardly look into when they receive their payment letters due to their own busy obligations. In this way, everybody is throwing the blame on the other and in this confusion making higher profits than what was estimated. This is the reason why the health insurance price is rising in a fast pace.
important reason for the increasing health insurance price is the increasing medical costs in the nation. The hectic life schedule is the answer for such rising medical costs. An average American works for around 18 hours a day in his house and his profession which is not the case with the other nations in the world. Americans are so much fond of self-independence financially that they do not allow their life partners also to stay cool in a non-earning job. They are so much self-dependent that they ask their own children to start earning after the completion of 10th or 12th class. The result is that these children tend to either stop their studies or continue name sake studies that their graduation really does not add any value to their thinking process.
Naturally, with such lower cadre knowledge, they tend to lose in competition to their counterparts in the other nations who are well bred and for whom education came very easily meaning that their education has a meaning. Because these citizens are not able to settle in good jobs due to lack of proper education, their risk towards medical ailments goes on increasing for whom servicing is done through non-native doctors whose salaries do not add to the GDP of the country but their expenditure is certainly borne by the nation in the name of health insurance price. So, the whole problem starts at the point of self-independence which is good to some extent but should not be over emphasized. Instead, if family life is fostered and the pace of the development of the economy is balanced with the happiness of the citizens who live in that nation, then, because happiness can be the cure for 50% of the ailments, the latter 50% will reduce their cost in search of their market which indirectly paves way to lower health insurance price.
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