Healthcare Reform not Root Cause of Higher Rates

11/6/2010

Higher health insurance premiums can't be attributed to any single cause. However, many assert that healthcare reform will only help rates continue their upward trend.

Colorado commissioner of insurance Marcy Morrison has set out to inform residents of the reasons behind premium increases. In a release, she attributed only 5 percent of rates hikes to new legislation. Morrison also says factors such as an aging population, expensive procedures and more doctor's appointments are causing healthcare costs to rise.

"We see companies who use aggressive pricing at one point to be competitive, but they will adjust premiums in future filings to increase their profits the following year," says Morrison. "There needs to be a balance between what companies charge and what the public can afford in order to buy health coverage."

For those who are concerned about higher premiums, there are ways to save on coverage. Using a health savings account allows people to use tax-free funds towards co-pays and medical procedures. High deductible plans can result in lower monthly payments, but more money on behalf of the patient must be paid before coverage kicks in.

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