Why You Must Pay $197 More Each Month For Health Insurance

The Cruel Truth About Health Care Costs

During the national Health Care Reform debates of 2009-2010 some politicians implied that the reason why health insurance premiums were so high was the greed of insurance company executives.  Other politicians, like Nancy Pelosi, came right out and said that the health insurance companies were evil.

Most states require insurance companies to collect enough money in premium to pay for all the medical bills they are given for their members during the year.

The reason that premiums are so high is very simple.  The insurance companies must collect enough premium to pay for legitimate medical bills as well as ones that are – let’s say – not quite as legitimate.

The National Academies has determined that the annual costs below must be paid as well as legitimate medical bills.  Apparently, insurance company executives are not the only “greedy” people involved in health care.

All the unnecessary Medical costs adds up to $710,000,000,000.  Assuming there are 300,000,000 Americans with health insurance, basic math shows that each of us are required to pay $197.22 a month in extra health insurance premiums.