A commonly asked question, and a tough one to answer is, "Why are my health insurance costs going up at a rate that is so much higher than inflation?" Experts say that there are no easy answers as to why costs keep going up. But there are straightforward explanations.
First of all, it is important to understand that the health insurance companies aren't the source of these cost hikes. They are merely a conduit. Nearly all insurance companies work with fixed and highly regulated operating margins. Health insurance premium increases are a "pass along" expense from rising doctor, hospital and overall medical costs.