Private Health Insurance

Written by Norene Anderson
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Private health insurance premiums continue to increase at an average of around 11 percent per year. The rate for insurance premiums is growing more rapidly than the rate of inflation and the increase in wages. Workers' earnings are not able to keep up with the increase on a yearly basis. The cost of insurance is taking more out of the average worker's take-home pay than ever before.

The number of people receiving private health insurance benefits from group benefits is decreasing. As many as 5 million have lost coverage in the last two to three years. A large portion of this amount is from small business employers who just cannot afford to provide a group policy. PPO plans cover more workers than any other type of insurance. The amount of deductible is increasing.

Difficulties Private Health Insurance Companies Face

The private health insurance companies are caught in the dilemma of providing health care at a price the consumer can afford to pay without refusing care to those in need to make a profit. The cost of premiums is averaged across the board to include the high-risk patients. Group premiums cannot be increased on one person or group without encompassing all on the same level.

In spite of the difficulties insurance companies are facing, there are still plenty of plans available to give affordable and complete coverage for the average worker. The creative planning of insurance providers offers a choice of many types of coverage with a variety of deductibles and copayments to make the premium affordable. The choices are readily available from a reputable insurance broker or agent.

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