States' Role in Cost Containment
It comes as no surprise that the reason many Americans lack insurance coverage is the direct result of the rising cost of health care. As health care expenditures continue to increase, so do insurance premiums. There are numerous factors contributing to dramatic increases in health care costs. Some of the major factors include an increase in the intensity of services, the availability of more expensive drugs and technological services, the aging population, and rising administrative costs. Health insurance costs have consistently risen over time while the percentage of employers offering coverage has steadily declined. In response, most payers are refining and developing new strategies to address underlying drivers of health costs.