The Better Care Reconciliation Act of 2017 was recently unveiled with far-reaching and profound repercussions on whether United States citizens were able to afford health insurance. Currently, Americans spend up to $3.4 trillion annually on medical care. This development forced most Americans to opt for the private health insurance sector. The cost of private health insurance in the U.S varies and depends on a number of factors, they include:
Age: Younger people tend to have a cheaper rates
Residing location: People living in places with more hospitals, such as Washington, tend to have a more expensive rates.
Level of coverage: Of course, the cost of single coverage is lesser than the family coverage.
There are uncontrollable factors that emanate when looking to buy a private health insurance. For example, geography plays a vital role in premiums. Also, crucial to insurers when deciding the cost of Medical Insurance premium is age, which could pose an ample impact on the cost of coverage.
While private health insurance is partly based on factors beyond control-such as age and location- there are other areas where insurers can take charge of the cost of private health insurance cost. Furthermore, getting the help of an expert health insurance adviser is a great idea here as they understand the insides and outs of the market. Thus, this could profoundly help an insurance seeker find a policy that suits their circumstances.
Private Health Insurance in the U.S- What’s The Cost?
Health care spending depends on certain decisive factors, including race, age, ethnicity, and whether an individual has a history of severe or chronic conditions. For example, though adults over the age of 55 make up over 25 percent of the population, they account for up to 50 percent of United States healthcare spending.
Studies of trends and averages are very important in considering the bigger picture. According to a Kaiser Family Foundation 2015 Employer health benefits survey, employer-sponsored family health care premium amounts to about $17,545 every year. Also, an average worker contributed about $1,071 for a single coverage and about $4,955 for the family coverage annually.
And from 2014 to 2015, health care premium rates rose by 4 percent, while wages of income earners shot up by only 1.9 percent. The majority of workers with an employer-sponsored plan, also have other out-of-pocket costs. About 81% have an annual deductible for single coverage (unlike in 2005 when only 55% of healthcare plan features a deductible).
While the average deductible for single coverage in America is about $1,318, the amount of the worker’s deductible varies (about $1,836 for small firm workers and $1,105 for large firm workers). And from 2006 to 2015, average deductible shot up from around $303 to $1,077.
In addition to the annual deductible and the monthly premium contribution, over 68% of workers will compulsorily make a co-payment for their office visit. For every in-network office visits, workers would be subjected to pay an average $24 for primary care and $37 for special care.
Hospital admissions are also put into consideration. Of all American covered workers who have fulfilled their required deductible, 65% have a coinsurance while 14% have a co-payment for hospital admission. Workers in the U.S spend an average of $308 on single hospital admission co-pay, and coinsurance workers’ pay a 19% rate.
Private Health Insurance Cost- Saving the Cost against Statistical Odds
For those who are young and would want a more comprehensive private health insurance plan, you should expect to spend over $100 per month on a single-coverage policy. If you’re planning to lower or even eliminate your deductibles, you may be required to pay up to $200 per month for your choice of policy. If you’re looking to save some cost on your private health insurance, discuss this with your employer about your plan to join its group health insurance plan. On the other hand, your insurance company could help you find a group.
The majority of the non-employer groups out there, comprises of demographically identical individuals whose plan is to utilize cost-management economies of scale. This group health insurance is very useful if you’d love to provide coverage for your spouse and children. However, you may have to spend over $500 (even more) per month on “family coverage.” What’s important is choosing a plan that suits the your needs and comes at a cost that is sustainable.
If you want to get more clarity as to which health insurance plan is best for you, call 1-800-793-3803 to speak with one of our licensed agents.