Health insurance premium growth was reduced to below half the growth rate experienced just 5 years ago. Increasing costs, utilization and waste in the health services system continue to be the principal drivers of increasing health insurance premiums.
According to a recent study from America’s Health Insurance Plans, general inflation accounted for 46 percent of the increase. Health care services in excess of inflation accounted for 30 percent of the increase. Increased utilization accounted for 25% of the average health insurance premium increases.
The premium rate growth from 2006 to 2007 was reduced by 31 percent as compared to 2004 to 2005, according to AHIP’s study.