Opinion: Market distortions controlling health insurance costs
Boosting health care spending could incentivize health insurance companies to increase costs as the price tags for health care plans are expected to rise over the next year, according to an opinion piece published in The Tennessean.
Columnist Micah Moughon stressed that despite high rates of coverage among Americans, high health insurance premiums and deductibles can make health care inaccessible and reduce middle-class wages. As a result, many patients delay visiting their physicians and receiving necessary treatment.
Mr. Moughon outlined the four market distortions that determine health insurance costs. He noted that because generic drugs aren’t sold directly to consumers, the insurer-negotiated prices are often higher. An Obama administration policy requiring insurance companies to spend up to 85% of their revenue on claims encouraged insurers to raise the costs of the claims. Further, insurers like UnitedHealthcare are responsible for providing care through employing a high number of physicians and distributing a large proportion of drugs. Finally, Mr. Moughon said that since employers pay for health insurance, employees have little control over the health care available to them and how much they’re required to pay for their plans. Consequentially, health insurance companies are able to eliminate competition with nonprofit health insurers and dictate how independent pharmacies and physicians can operate in the United States.
To remedy the complexities of rising health insurance costs, Mr. Moughon proposed that employers provide their employees with the sum they typically spend on health care plans. The money could then be divided into an insurance plan that covers catastrophes and a health savings account. This would force health care prices to decline and allow patients to afford their deductibles. Smaller employers could provide greater benefits by subsidizing health care for their employees. He concluded that empowering patients may be the only strategy to help regulate soaring health care costs.
Read more: The Tennessean
The article presented here is intended to inform you about the broader media perspective on dentistry, regardless of its alignment with the ADA's stance. It is important to note that publication of an article does not imply the ADA's endorsement, agreement, or promotion of its content.