Will Tennessee Health Insurance Increase As Health Care Costs Rise?
As healthcare costs continue to rise, what does this mean for millions of people
struggling to hold on to Tennessee health insurance policies or trying to get coverage for the first time? Can people handle another wave of rate increases?In 2000 alone, the United States had spent 13.8 percent of GDP on healthcare. However, figures jumped to 17.6 percent in 2009. If we look closely at this current trend on how the country spends money for health care, the whole American economy will be consumed by 2082. How will children born today be able to handle health care costs by the time they are adults? Since Tennessee health insurance premiums are greatly affected by the cost of health care, would we see an increase in the number of people living without health coverage?
What Factors Increase The Cost Of Health Care?
One of the explanations that we commonly hear from insurance companies why they are increasing Tennessee health insurance plan premiums every year is to keep up with the rising cost of health care. According to health policy analysts, innovations in technology are the big drivers of medical care costs. This includes advancements in the field of pharmaceuticals, diagnostic tests and medical treatment. And when we say new technology, it would really be expensive.
Even though the new technology is less expensive than the one it replaced, the overall costs would still increase if the demand is great. For example, there is a new MRI machine. If, let's say, more than 200 patients need this diagnostic procedure every day, the tendency is that the medical facility would buy more MRI machines to cater to this demand thereby increasing the cost of healthcare.
Consumers Should Be Empowered To Make Their Own Healthcare Decisions
To effectively reduce the cost of healthcare, the best solution would be to empower individuals to make their own healthcare decisions. And to do that, there are consumer-driven Tennessee health insurance plans that encourage people to be more proactive in making their own healthcare choices.
One of the popular TN health insurance plans that empower consumers are Health Savings Accounts (HSA). With an HSA plan, you are allowed to make contributions that grow tax-free. You can use the funds to pay for future qualified medical expenses and withdrawals are tax-deferred.
In order to enjoy the benefits of HSA plans, you need to have insurance that is compatible to work with an HSA. You need to have a qualified high-deductible health plan. These two plans always go together just like a bow and arrow.
For this year, you must have a minimum plan deductible of $1,200 for singles and $2,400 for families to start an HSA. The maximum amount that you can contribute for individuals is $3,100 and $6,250 for family HSA plans. An additional "catch up" contribution of $1,000 is allowed for those 55 or older. Once you turn 65, withdrawals can be made for non-medical purposes without incurring penalty charges.
If you just use your HSA plan wisely, it can help prepare you for your retirement years. Unlike Flexible Spending Accounts, the remaining HSA balance at the end of the year is carried over to the next year. With an HSA, you can even legally reduce the income tax that you are paying every year.
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