While this can mean a longer, healthier life, it does increase health care spending. People over fifty use twice as much health care as those in their twenties, almost four times as much by the time they hit sixty . In addition to the shift to newer, higher-priced drugs, advertising drugs directly to consumers puts pressure on doctors to prescribe what the patient requests . . . The federal government and states keep on passing new laws that require insurers to cover a wide variety of services and items. These mandates increase the cost of coverage for everyone.
Some people believe that health insurance premiums make the price tag higher for health care.
Today, the cost of health care is going up. And, although company profitability varies, on average less than one percent of that premium dollar represents profits. The remainder goes to state and federal taxes, the cost of running a business, and customer services. It's true that health insurance premiums have risen. But the value of benefits also has grown.