Why Health Insurance Costs So Much

Armen Hareyan's picture

In a time when Senator Max Baucus is proposing a new limit on health insurance premiums to make them more affordable and the reports say that nearly 15.4 percent of the U.S. population lacks health insurance coverage one wonders: why has the coverage become so expensive. According to Chicago Sun Times the Census Bureau reported on Tuesday that 46.3 million people in this country do not have health insurance coverage.

The first question that arises in everybody's mind while choosing an insurance policy is "Why does health insurance cost so much?" You read in newspaper's different reasons that cause insurance costs to rise.

Here is why health insurance premiums are high and not affordable.

Unhealthy lifestyle: People today have changed their lifestyles. They are more into smoking, excessive intake of alcohols, junk food consumption, poor eating habits, and lack of proper exercise. Stress and obesity are also the two important factors which results an increase in health care costs.


Use of new technologies: There are numerous advancements taking place in technologies which has resulted in increase of insurance costs. For instance, digital imaging procedures are more costly than the existing technologies.

New treatment facilities: With new technologies come new treatment facilities. These facilities are often demanded by patients and the physicians like new medicines which replace the inexpensive medicines in the market.

Uninsured healthcare: There are few instances when hospitals and physicians are required to treat patients who are uninsured. Sometimes they don't receive the payment for the treatment they provide.

When applying for insurance if you are able to quit smoking, avoid unhealthy food and cut down on alcohol consumption your premiums will drop dramatically.

The best place to find your insurance quote is over the internet. With high competition between insurance providers for your business you can save up to 50%. Trying to find insurance over the phone is not just time consuming, you are subject to sales pressure to buy the insurance as well.

Written by Andy Ryan