How Much Does Health Insurance Cost?
Health care is a special investment, which can come in handy when unexpected occasions arise. The use of the benefits of health care will minimize the cost that the beneficiary will need to pay when needed. Over time, the requirements of being covered by national health care have changed, and along with it did the cost of health insurance vary.
Health care spending is increasing continuously, which forces businesses to lower the coverage of health insurances for their employees, which leads to the families being forced to cut back on other necessities in the home like electricity, food and shelter. The continuous upsurge is seen to be a product of an inefficient administrative production, inflated expenses, and fraud on the part of the government. Hence, the cost of health programs have increased, which has affected the health security of the families.
At the national level, the expected expenses for health spending will reach up to $2.5 trillion this year, accounting for 17.6 percent of the total income of the country. Nine years after now, the expenses is expected to reach up to $4 trillion, which is double of what 2007 has spent. It has been seen that the health expenditures are increasing faster than the GDP at 6.4 percent while the GDP is only increasing at 4.1 percent. This will lead to an account that covers 50% of the national health spending in three years.
The increase in job-based coverage in health insurances has increased from $1,543 to $3,515, which has made it difficult for businesses to cope up with full coverage of the health insurances of their company employees. As an agreement, those employees who can afford to cover the expenses will need to be served with a lower coverage by the company. Employer-sponsored premium health care for a family with four members is estimated at $13, 400 per year, with the employee bearing up to 27 percent of the total cost. This cost could double up within a decade. The cost of family insurance will reach up to $25,000 per year because of the absent health care reform.
Meanwhile, the cost of a total health insurance for employers is around $850 billion in the year 2019, with individuals and families allocating from $326 billion today up to $550 in 2019.
The increase in the cost of health care benefits has been a product of the failure of companies to cover the health insurances of the employers. Company bankruptcies due to insurance coverage of employees were listed at around 67 percent of the total bankruptcies filed in 2007. According to surveys, the main reason why health insurance is not prioritized by families, thus leaving then uninsured is because of its high cost.
This has led to 1.5 million families losing their homes because of foreclosure as a byproduct of not being able to afford medical costs.
The impact of having a costly health insurance is the likelihood of the damages it will do to extend in the near future. Small businesses will have to allocate about $2.4 trillion in the next ten years if they want to cover the insurances of their workers; however, 178,000 small businesses will suffer with the implications of this costly leverage. The deduction of working businesses will decrease the GDP of the country to up to $52 billion in profit and will lead to the unemployment of 1.6 million workers.
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Nice writing style. I look forward to reading more in the future.