Why are premiums going up if increases in health care costs are slowing?

In 2011, the United States spent $2.7 trillion on health care, up 3.9 percent from the previous year and continuing the industry’s trend of outpacing the rate of consumer inflation. Even though that increase is actually an improvement from the rapid climb of health care spending over the last three decades, this level of spending increases is unsustainable.

Many factors play a role in the underlying trends of health care costs, including the price of medical services, our society’s personal behaviors, new technology, prescription drugs and many others. As the ACA takes effect in 2014, it will also increase the cost of health care as it expands access to insurance for millions of Americans. There are substantial costs associated with having a system in which everyone can obtain health insurance regardless of their age and health condition.

As these changes take effect, BlueCross BlueShield of Tennessee is committed to offering our members affordable health plans that meet their needs. Learn more about what we are doing to help control costs here.

Posted in: Health Care Costs 101