Why is the cost of Health Insurance so High?
Many ideas have been presented as answers to this question, some with merit and some with no merit at all. Some answers are based on the political position a so called expert wants to exploit; However, there are a significant number of studies and research that give us the major reasons for the huge annual increases. The reasons fall into six areas. – First , out of control lawsuits are crippling not only the health care industry but many other industries as well. In an unrelated area you might ask; Why does an $18.00 step ladder cost $75.00? Look at the number of stickers on the ladder. Most of them are warnings on how to use the ladder and how not to use it. The stickers are intended to limit lawsuits that either have been brought against the manufacturer or to limit future lawsuits. They only reduce the cost of the potential damage. The cost of the ladder must have the litigation costs built in so the company can stay in business. Only in the U.S. are lawsuits so out of control. But
