Throughout the world, one can find a sudden rise in the cost of average health insurance plans, thus leading to an increase in health insurance premiums. For example, there was a recent spike in health insurance premiums in the United States, and likewise, there has been a similar condition in the UAE. For those wondering about the fact as to why there is such a sudden rise in the price of the premiums, here’s a quick through of the reasons.

The sudden increase in the usage of healthcare services

The healthcare industry is facing enormous pressure to cope with the rise in population to provide better healthcare services. More and more usage of healthcare services by the people has resulted in a financial strain on the healthcare industries to facilitate their medical services better. This rising price of healthcare today is a result of years of the steady rise of burden.

The increasing cost of healthcare technologies

With the advancements made in healthcare, technologies come a downfall in the form of a higher price to avail such services. In countries across the world, healthcare systems are experiencing a global revolution in advancements made in medical science and types of equipment to provide better aid to the overall industry’s output and efficiency. This advancement has resulted in newer equipment and more skilled labor, thus adding to higher costs as a direct result.

The higher the average age of the population

The decrease in fertility rates across the world has given rise to an older and more worn-down population. This has resulted in the healthcare providers to be extra caring while aiding medical services to this aging population. In simple terms, one can say that there are more older people that need care, which has resulted in a higher cost of medical services that are offered to this aging population.

Rise in Inflation

Industries and businesses across the world have experienced a higher rise in inflation. Thus, healthcare is no exception either from this volatile financial trend. Inflation has resulted in an increase in expenditure to avail labor for medical companies. This also adds up to the rise in cost to purchase advanced equipment types and oversee the range of such procedures. This means the increase in the price will trickle down to reach the customer as well.

The rise in health conditions and medical claims

One of the significant aspects that have increased global health care rates is the rise in medical conditions and healthcare-related issues worldwide. This has also resulted in diseases caused by vagrant lifestyles. A survey done in 2016 by the Abu Dhabi Department of Health has shown that deaths from cardiovascular diseases have risen by 2 percent since 2015. Another global trend that’s been recently trending is the consumption of opioids and painkillers getting sanctioned on a large scale by the healthcare industry. This shows that there is an increase in the number of people claiming health insurance year on year has also resulted in insurance companies to increase their premiums.


Health insurance premiums are set to stay on a constant upward rise with the issues mentioned above. This means there’s no sign of declining anytime soon. Thus, the only logical solution that one can think of with these increasing costs is comparing health insurance plans and purchasing them carefully. A good analysis can help you figure out the right health insurance plan with the best deals suitable for you.

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