In 2006, Price Waterhouse Coopers prepared an assessment for American Health Insurance Plans describing why health insurance premiums are rising. http://www.ahip.org/redirect/PwCCostOfHC2006.pdf
The report, on page two, has a pie chart, that credits premium increases to: 27% general inflation, 30% increase in the price paid for healthcare in excess of inflation, and 43% increased utilization ("consumer demand, new medical treatments,....more intensive diagnostic testing due partially to the practice of defensive medicine."http://www.ahip.org/redirect/PwCCostOfHC2006.pdf page 2)
Instead of examining all elements of the "crisis", the focus is endlessly on scrutinizing insureds. Why? Individuals are easier to squeeze than lobbies and the groups they represent.
57% of the increase in health care premiums has nothing to do with individual insureds. 57% of the increase in premiums is due to inflation and greedy medical providers who upped their single year charges by 30% from 2004 to 2005 according to the report.
Task a day insurance: Read this report and remember, it was put out by the health insurance industry justifying their rate hikes. Then ask yourself why it is that we're willing to accept all the new squeezes and exclusions on our coverage so that medical providers can raise their rates 30% in a single year?
