How The Health Insurance Industry Reduces Medical Costs

It's simple economics. The more it costs to take care of each insured customer, the more the health insurance companies have to charge all their subscribers. This cost/expense ratio is what has made most health insurance companies embrace the idea of providing preventive care to their subscribers. It's a simple matter of business sense - healthy people don't cost the insurance companies a lot of money. 

​For many families here in Colorado, finding affordable health insurance is a task not much easier than finding the lost city of Atlantis. A family health insurance plan here in Colorado can easily cost as much as $800-$1000 per month. Even when you split that cost between employee and employer, that's a major chunk of nearly anyone's monthly budget.

And while it's popular to swear under your breath at the greed of the health insurance industry, a look at the cost of medical care is an eye-opening shock for many people. The expenses associated with a broken arm, for instance, can easily mount into tens of thousands of dollars.

The Health Insurance Industry has a stake in keeping people healthy.

The high cost of health insurance is the direct result of the high cost of medical care. The more it costs to take care of each insured person the more the insurance companies have to charge everyone. This cost/expense ratio is what has made most health insurance companies embrace the idea of providing preventive care to their subscribers. Health people don't cost the insurance companies a lot of money. 

Preventive Health Benefits Help Keep Costs Low

Among the benefits that have become commonplace for major health insurance providers are routine physicals, medical screenings for all subscribers, discounts on health club and gym memberships, payment of dues for weight loss groups and lowered subscription fees for non-smokers. Some health insurance companies and HMO's go even further in their preventive efforts. In the same spirit of prevention, many HMOs offer free stress management and stress reduction workshops to all subscribers because stress has been identified as a leading risk factor in nearly every major illness.

Seeking a Cure

The quest for affordable health care has also prompted health insurance companies and HMOs to help fund research and health initiatives all over the country. The health insurance industry underwrites millions of dollars of medical research annually in an effort to lower the costs of health care. Their dollars fund grants to enroll low income and other hard to insure populations, and to offer eye, dental and health care to inner city and poor rural populations. The industry estimates that routine preventive eye and dental care, as well as routine medical screenings and physicals can identify illnesses at early stages and prevent conditions and costs from escalating out of reach.

At Choice Enrollment, we love health insurance and we love helping Colorado businesses and families get great coverage at affordable rates. For more information about Health Insurance in Colorado  contact our agency at (719) 481-1616 or click here to get a quote today!