Health care costs have increased 3 to 5 percent this year. Insurance premiums are increasing at a much higher rate because the profit margins of the insurance companies are under attack from Obamacare.
Currently, the health care insurance industry spends 50 cents on the dollar for actual health care for its customers. In other words, they have become accustomed to a 50 percent profit margin, minus overhead.
Obamacare will mandate payment of 80 cents on the dollar for actual patient care. The abrupt increases in premiums that everyone is suffering are an effort by this industry to profit-take as much as possible before the 80/20 provision of health care reform kicks in.
For any other service, the business owner could look elsewhere, but there are only three companies that provide 90 percent of the health care insurance in this country, and they have enjoyed an antitrust exemption for many years. Without health care reform, the citizens and businesses in this country are at the mercy of their health care insurers. Consequently, U.S. citizens pay double for their health care, compared to other modern nations.
The math is simple. Why anyone wants it to continue is beyond me.