Why do companies raise premiums?
Insurance companies often raise premiums when the cost of claims they must pay increases. Medical-cost inflation, a major factor that contributes to premium increases, measures the increased cost of a particular procedure each year. Medical utilization, or the number of times doctors perform a procedure each year, also causes premium increases. Cost shifting occurs when hospitals raise their rates for services to offset the cost of caring for nonpaying or indigent patients. In addition, new technologies, tests and medical malpractice claims can contribute to cost shifting and increase the cost of health insurance. back to top GLOSSARY Application This document is a signed statement of facts that an insurer uses to determine whether to issue coverage. The application includes your name, age, address, and may include questions about your medical history. It becomes part of your health insurance contract. Assignment An assignment is a document signed by a policyholder authorizing a compan
