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Increase in Insurance Costs
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Increase in Insurance Costs
The cost of health insurance is continually rising mainly due to the constant exposure of individuals to risk factors that affect their health. Smokers expose both themselves and others to different conditions that increase the healthcare costs in the country. Also, people who do not exercise present different extreme health conditions that immensely increase the costs of healthcare provision. Increasing the insurance rates for these individuals will not serve the intended purpose since they will stop taking insurance altogether (Friedman, Schpero, & Busch, 2016). A higher insurance premium will make them forego taking a cover. The fact that they cannot effectively change their behavior represents the fact that an increase in insurance will not lead to meaningful changes in the healthcare system. A change in behavior amongst these individuals will result from the use of financial incentives that will encourage them to change their habits. This behavioral change is the ultimate solution to rising healthcare costs.
References
Friedman, A. S., Schpero, W. L., & Busch, S. H. (2016). Evidence suggests that the ACA’s tobacco surcharges reduced insurance take-up and did not increase smoking cessation. Health Affairs, 35(7), 1176-1183. doi:10.1377/hlthaff.2015.1540