Why Is Health Insurance So High?

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   David G. Pipes, CLU®, RICP®

   Business Development Officer, T.D. McNeil Insurance Services, Fresno, California

   An insurance company forms a pool of people.  It charges a premium based on the projected medical expenses of the people in the pool.  Previously underwriters had several tools to restrict those with high expenses from entering the pool.  That has been eliminated.  Additionally, procedures which were not covered under previous policies must now be included.  An increased numbers of participants might result in hospitals and medical groups accepting a lower payment for services but for now the pressure on premiums appears to be upward.

   Answered on March 5, 2014

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