A new study from the Kaiser Family Foundation, a non-profit health care organization, has uncovered a startling trend concerning the cost of employer-sponsored health insurance. The study shows that the cost of health insurance for employers has been rising at a rapid pace this year, which runs contrary to reports citing moderate increases to insurance rates. Exactly why rates are currently soaring to new heights is unknown, but researchers from the foundation speculate that it may be due to the federal insurance mandate which requires all people to have health insurance of some kind.
The insurance mandate has been popular amongst the nation’s private insurance companies as it means more business. More clients also translates into more risk, however, as well as higher administrative costs in managing that risk. Coupled with the rising cost of medical care, the fact that more people will have insurance essentially means that insurance companies may be losing more money covering a multitude of policies. To stay afloat, and to ensure profit, insurers are being forced to raise rates.
The study notes that as the costs of medical care have risen over the past couple years the rate at which insurance is being used to pay for such care has fallen. Fewer people may be seeking care for fear of their insurance companies raising rates after care is received. The study also estimates that the rate at which health insurance rates are growing will slow at some point in 2012.