Health plans are expecting premium rate increases in 2008 of 7.4%, 0.8 percentage points lower than last year's expectation of 8.2%. This is the fourth consecutive decline in the rate of premium growth.
Sherlock Company conducted this survey in September of 2007. The survey contained 76 responses, comprising 20.7% of health plans serving commercial members nationwide.
Separately, the survey notes that the East South Central region is expected to have the highest premium rate increases and the Pacific region is expected to have the lowest. Also, the survey indicates that plans expect to post increases before buy-downs of 9.4%, down from 10.4% in 2007. This implies an increase in consumer cost sharing of 16.2%. Health benefit ratios are expected to increase by 0.5 percentage points on average, and health care costs are expected to increase by 8.0%.
So, what can be done for a health care system that has become almost completely privatized? The answer, is nothing. The economy, which, especially under the current administration, has pushed towards more pure capitalistic ideals, is the reason for this rise in heath care premiums. With states like Massachusetts forcing all people living in the commonwealth to have some form of health care, the health care providers are cashing in. Health care is not a national issue, but rather one of global concern. Many countries are not giving adequate care to citizens that can not afford these premiums. It is disheartening to say the least, but something needs to be done, with presidential hopefuls speaking of all of the pressing issues, one thing that needs to be on the forefront of the 2008 elections is that of health care.
