Yes they are! Here are a couple reasons:
First - Over 85% of each premium dollar is used to pay the ever expanding cost of the medical
treatment people are receiving. It's important to understand, as shown in this chart, how a premium dollar is spent .
Note: A big reason medical insurance costs are so high today - 70% or more of medical treatment dollars can be connected to
conditions resulting from life style choices e.g. smoking, to many big burgers, etc.!.
Second -a chart showing how medical treatment costs have increased much faster than inflation since 1988 can be seen here.
If a person suddenly has a significant accident or unique illness the financial risk can be significant. Thus, the most effective way to solve the problem, of having a very very large hospital bill, is to transfer this big risk to a medical insurance company!
How much does treatment cost? The average cost for various medical
treatments is shown in this
informative chart, on the Life and Health Insurance Foundation
for Education's (L.I.F.E.) health insurance cost page. Cost will be higher here in Connecticut but these amounts are still
insightful. |