An Insight into the American Insurance Marketplace


A national survey on the American health insurance that was released on Tuesday had some good news and bad news. Initially, Americans had gotten used to soaring health insurance premiums if they had been covered by the Affordable Care Act. The good news of the report is that there is stability in health insurance market for those that receive coverage from their employers. The report showed that these premiums rose a little this year making them suitable and favorable for many employers. According to a nonprofit group known as Kaiser Family Foundation, family coverage annual premium rose to $18,764. Comparing to previous figures, this is just an increase by three percent which is favorable to many people. The family foundation also reminded its readers that this happens to be the sixth straight year that these premiums have changed by a margin of less that 5 percent. The study also revealed that most of the costs were paid by the employer. On average, the Kaiser Family Foundation discovered that employees only paid $5,714 for the family policy for one year. At the moment, the number of people that are covered through the employer is approximated to be 151 million people. Kellogg School of Management at Northern University economist Craig Garthwaite said that most of the insurance environments for these institutions are known for their stability.

However, small companies are facing the challenge of paying for these premiums. The Kaiser data found out that a number of smaller companies have been unable to provide health insurance to their employees. They noted that for institutions with less than 50 workers, the percentage of companies offering insurance to their workers had fallen to 50 percent from 59 percent. This is quite a drop if we compare to a scenario 15 years ago when 75 percent of small businesses provided benefits to their employees. The bad news of the report is that health costs are even stressing people whose insurance is covered by the employer. However, despite these stresses, they cannot be compared with those who have to shop their insurance under the Obamacare. At the moment, only 20 percent of Americans buy their own insurance. Under this category, the cost of a health premium has risen by 20 percent as insurance companies look to cut their losses. The study concluded by offering a recommendation. Insurance unrest combined with political uncertainty is likely to make the situation even more complicated than it is today.


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