Health insurance premiums projected to rise again in 2012

Health insurance premiums are projected to rise yet again next year, and a local health economics professor said it's just one way in which the cost of healthcare will increase.

"Not only will premiums rise, but probably our deductibles will go up as well, so our out of pocket medical costs may also increase," said Kerry Anne McGeary, a professor in Health Economics for Ball State.

The Kaiser Family Foundation found insurance premiums have risen 131 percent since 2001. McGeary said that trend is expected to continue this year, after insurance companies indicated they'll raise premiums another 5-10 percent in 2012.

Though many people question the relationship between healthcare reform in Washington and the rising cost of insurance, McGeary said the growing age of the population and our dependence on healthcare services has contributed more to the problem. Still, she said nothing alone seems to explain such a big increase over time.

"There hasn't been a study that really can identify where this rise in the premiums is happening," McGeary said. “It could be anything from just to maintain profits or generate higher profits in an economic downturn."

McGeary said the best way to control costs is to manage how you use healthcare. She suggests creating a health savings account, to help manage expenses and seeking out any cost saving incentives available from your provider such as wellness programs.

"Just keep yourself healthy, eat right, exercise, do everything you can to keep yourself from needing the healthcare services," McGeary said.