NZ-Pathfinder Financial Services

Medical Inflation and Its Impact on Health Insurance Premiums

20/12/2023 08:00:00 Comment(s) By Pracca

Medical inflation refers to the continual increase in the cost of medical procedures over time. This encompasses the growing expenses associated with diagnostics, medications, and an overall rise in claims across age groups. Here's a closer look at the key factors contributing to medical inflation and why they matter:


Advancements in Medical Treatments:

Progress in healthcare has led to more effective yet costly treatments. For example, robotic surgeries offer quicker recoveries but at higher expenses. New medications, like advanced chemotherapy, have improved outcomes but come with a price premium.


Demands for Advanced Diagnostics:

Healthcare providers now rely on sophisticated diagnostics, increasing accuracy but adding to costs. Procedures once requiring two diagnostics now demand three, and scans to assess treatment efficacy contribute to expenses.


Changing Healthcare Expectations:

People now expect comprehensive healthcare solutions due to heightened awareness, thanks to the internet and social media. This shift in attitude drives up the number and cost of claims.


In conclusion, medical inflation's impact on health insurance premiums is substantial. Clients must comprehend its distinct nature to navigate the evolving healthcare landscape effectively.