Rising Health Insurance Cost

Today, I’m going to address a topic that impacts every viewer of this show, and that’s the rising cost of health insurance. So today we’re going to look at how do we help you better understand the rising cost of health insurance and how it impacts us all. So the first thing we’re going to consider is that costs rise with age. As we age, health insurance premiums naturally go up. And and that’s because of obviously all the different health, concerns and considerations that we might face as we get older. So the things you may not worry about in your 20s now, in your 50s, you’re more inclined to worry about in the obviously, the health insurance companies understand this and see this in their data. So they, increase the health insurance costs and premiums for you as you age. So one is obviously the costs naturally arise with age. So that impacts your health insurance, overall cost. The second is medical inflation. So health care services, prescription drugs, hospital stays, different tests, specialist tests, all these costs, increase, have increased, I should say dramatically over time. So if we look back at the last 20, 30 years, you’ll see that medical inflation really is outpacing almost any other. It really is outpacing any other type of inflation. And matter of fact, we we run this in a lot of our, presentations where we’ll show slides on different types of inflation. And some things have actually come down. We look at, you know, whether it’s electronics. So think of like your TVs or things like that. They’ve actually, moderate inflation or no inflation at all on their costs over time. Whereas, you know, your hospital stays and your medical costs have really, driven up a lot more than most other consumer goods. So medical inflation is a real key thing that we have to think about and worry about. Really. Another thing, that is chronic conditions drive up the cost as we age of of health insurance. So think, you know heart disease diabetes, joint and mobility issues, cancer risk, respiratory issues, all these different things, these chronic conditions. Obviously. They just require more tests, of course. Right. They require more, maybe prescription drugs to, to help deal with them. They’re long term, right? They’re chronic. So there’s something that continually is going to require medical visits, maybe special specialist visits. And so these chronic conditions obviously really drive up the cost over time of health of health insurance. And then you have policy and market factors to consider. So when we think of policies, so there’s a lot of different regulations in place within the health insurance space. And this is ultimately good at protecting you and I the health insurance consumer. Right. We want certain protections, for us. But with that regulations, that are protecting us with those regulations that are protecting us, I should say that can also drive up the cost. So, you know, these different policy, government policy, federal policy, placements within the health insurance space, again, while ultimately protecting you and I, as the end consumer, can drive up the cost and then market factors depending on where you live, what state or what, part of a certain state you might live in. You may have limited competition. So within that market, you might have only one, 2 or 3 insurers. And obviously with that limited competition within the market that can also, with that lack of competition, drive up the cost of your health insurance in that market. So we think about all these different factors, you know, while rising costs can feel unavoidable, with regards to your health insurance, there are things you can do. One is to shop around annually. So just because you had to plan last year, don’t just assume that that’s the best plan for you. Now, the second is take advantage of wellness programs. Some different insurers will give you discounts if you sign up for a wellness program. So check those out. See if those would work for you. A third is maybe if you’re a healthier person, maybe consider a higher deductible plan with a health savings account. Another is, you know, to review drug cost and coverage because they they’re constantly changing. So make sure that the plan you’re signing up for is going to cover the prescription drugs. You have and then ultimately work with a licensed insurance broker. And this is someone who can help you compare and contrast the plans. It can be confusing to try to navigate this on your own. So work with a licensed insurance broker. Here’s some what we’d be happy to help you navigate the confusing landscape of, rising cost of health insurance. So if you would like to sit down with us, to hear more about what we offer and how we can help you navigate this health insurance space, please feel free to reach out. Call the number on the screen so that we can help you plan to retire well.