Why Does Health Insurance Cost So Much?

Why does health insurance cost so much? Year afterexercise and poor diet.
year, many of the articles that appear in print detail theMost of us, myself included, make lifestyle choices
specific factors driving the cost of healthcare.everyday that eventually increase our demand for
These factors include: general inflation, advances inhealthcare. We are never going to be able to totally
drugs and other medical devices, rising hospital andeliminate all lifestyle related healthcare costs. However,
doctor expenses, government mandates, increasedimproved lifestyle choices would cause a dramatic
consumer demand, litigation, fraud, and cost shifting.reduction in demand. This would then result in a similar
The basic answer is that a magic bullet to solve thereduction in the dollars spent on healthcare.
cost of insurance does not exist because the realLower demand for healthcare would result in lower
difficulty is controlling the cost of healthcare. A simplehealth insurance costs, increased productivity, and
way to dramatically decrease the dollars spent onreduced absenteeism. If your organization has not
healthcare is to reduce the demand for healthcare.done so already, your organizational leaders need to
I have seen estimates that up to 40% of all healthcareseriously consider the benefits of health promotion and
related expenses result from preventable conditions.disease prevention programs. Your return on
These preventable conditions are caused by lifestyleinvestment will most likely be as high as 2:1 in the first
choices such as tobacco, obesity, stress, lack ofyear.