With Lower Health Insurance Premiums on the Horizon, How Will Insurance Providers Address Increasing Costs?

 

The Congressional Business Office released a proposal to reduce health insurance premium costs. Clearsurance.com’s health insurance expert, Melanie Musson, examines potential causes and solutions for increasing insurance premiums. As open enrollment season approaches or has already begun in many places, some policyholders face the shock of drastically rising health insurance premiums. No-deductible health plans are almost expected to be expensive, but even high-deductible plans are too costly for some consumers.

The Congressional Budget Office Suggests Causes for High Insurance Premiums

The Congressional Budget Office (CBO) recently published a proposal for commercial health insurance providers in an effort to reduce insurance premiums for policyholders. The CBO is attempting to address this issue, but some disagree with the basis of some of their proposals. For example, the CBO puts much of the responsibility for higher insurance provider costs on increasingly expensive hospital and physician services.

The American Hospital Association Argues They are Not Primary Contributors Toward High Premiums

But the American Hospital Association (AHA) argues that over the past decade, hospital price growth has increased at less than half the rate of insurance premium price growth. The AHA blames higher insurance premiums on saturated markets, among other things. The CBO also attributes rising insurance premiums to market power, as well as consumers’ and employers’ lack of sensitivity to prices.

Insurance Providers Know the Cause of Higher Premiums and Should Work Toward Lowering Costs

No one understands insurance provider business costs and premium costs better than the insurance providers. And no matter how justifiable premium increases are, the current rate of increase is unsustainable. Insurance providers will lose customers and capital when consumers can no longer afford premiums. Even if hospitals argue they’re not impacting insurance provider costs, there’s no doubt that lower hospital costs would enable insurance providers to lower premiums. The disparity between what Medicare and Medicaid pay for hospital and physician services and what commercial insurers pay is significant. For example, in some states, insurance providers pay double what Medicare pays for certain services.

So, insurance providers should work with hospitals to negotiate better and more fair rates. They should also work with politicians and Medicare service providers to push for increased funding so government-sponsored health insurance will pay a competitive rate for hospitals and physicians. Across the globe, countries have health insurance structures that differ from the U.S. While a complete overhaul of the system isn’t feasible, insurance providers would be wise to study efficient systems in other countries to implement some of their practices.

Follow us on social media for the latest updates in B2B!

Image

Latest

college
Gamifying College Readiness: How Loper Makes the Enrollment Journey More Engaging!
October 16, 2025

High schoolers are overwhelmed — and not just by homework. The path to college can feel like a maze of forms, essays, and deadlines, with little guidance on where to begin. A recent survey found that nearly three-quarters of students describe the college application process as “difficult.” For many, that difficulty isn’t academic; it’s…

Read More
Image
How Polygon’s Smart Moisture Control System Protected a Mass Timber Student Housing Project
October 16, 2025

Amid the rise of sustainable architecture, mass timber has become a powerful symbol of progress — a material that marries renewable design with modern efficiency. Yet, in the damp climate of Vancouver, BC, sustainability meets its match: moisture. Managing humidity levels in large-scale wood construction isn’t just a matter of comfort; it’s about protecting structural…

Read More
Classroom air quality and student performance
The Hidden Factor Shaping Student Success: Classroom Air Quality
October 15, 2025

By Dan Walsh, VP & GM at AAA Home Services, and Christine Willing, CEO of Think Happy Live Healthy. Why Air Quality Matters in Schools When we think about improving schools, conversations often center on curriculum, technology, or staffing. But there’s a silent, invisible factor that profoundly influences student health, behavior, and learning outcomes: the…

Read More
Chase Harris
Faith, Fatherhood, and Fortitude: Inside Chase Harris’ Mission to Make Accessibility Possible for Every Child
October 15, 2025

Chase Harris is a father, husband, entrepreneur, and all-around force of light. Alongside his wife, Carly, and their son, Cash, he has inspired millions online through messages of resilience, faith, and family. Their story is one of turning adversity into action — and hardship into hope. “We knew early on that Cash had this special…

Read More