Why Is Health Insurance So Expensive?
And a few reasons why I don’t take it.
Last year, the average annual cost of individual health insurance in the United States was nearly $9,000–that’s almost $750 per month. And just a few days ago, The New York Times warned: “Get Ready for Higher Health Insurance Premiums Next Year,” thanks to rising costs.
There are no two ways about it: This is extraordinarily frustrating! Especially because health insurance is vital. Studies show that people who are uninsured tend to forgo care they need and receive fewer preventive services for chronic conditions. It’s something many of us depend on, especially when we are at our most vulnerable.
So why is health insurance so expensive?
Like any big, intractable problem, there are many reasons why the price of insurance is so eyewateringly expensive. But I want to highlight a few that are top-of-mind for me.
1. Insurance companies prioritize profits over patients
Did you know that the US is home to the only profit-motivated healthcare system in the world? And insurance companies prioritize profits for shareholders–and salaries for executives–far above the wellbeing of the people they ostensibly serve. In fact, together, CEOs of only the top six health insurance companies made $159.4 million in 2024. Yes, really.
Unfortunately, these are fundamentally for-profit corporations that don’t have patients’ best interests in mind.
2. Insurance companies spend a lot of money influencing legislation
Not only are health insurance corporations paying executives sky-high salaries. They also spend an enormous amount of money on lobbying the US government instead of actually paying for care. Hundreds of millions, in fact. Those lobbying dollars are spent to influence our leaders to pass legislation that helps their bottom line–and to block legislation that would hurt it.
3. The American healthcare system is mired in a lot of red tape
The system as it exists today is a tangled mess of red tape for everyone–insurers, providers, and patients. And that mess? It costs a lot of money.
According to a 2019 report, “each year, health care payers and providers in the United States spend about $496 billion on billing and insurance-related (BIR) costs.” Compared to other high-income countries, that’s about double!
4. Insurance companies incentivize lots of care–not quality care
Insurance companies typically pay providers per service–a certain amount for each test, procedure, visit, and so on. That incentivizes providers to increase the volume of care they are giving, but necessarily the quality of care. More services, more money.
It’s just one of many ways these insurance giants interfere with the relationship between patients and their health care providers.
Why Whole Person Well Care Doesn’t Take Insurance
I want to be clear here: I’m not suggesting that you get rid of your health insurance! In fact, most of my patients do have insurance because it’s super important, flawed as the system may be. But I started Whole Person Well Care–a practice that does not take insurance–to give you an option that exists at least somewhat outside of that flawed system. That is perhaps especially important right now for marginalized groups.
If I could summarize why I don’t take insurance for one reason it would be this: It gives me the freedom to offer care that is truly centered on you. When insurance is involved, there might as well be some guy in a suit sitting in the corner telling you and me both what type of care you’re allowed to get. And that’s just kind of creepy and weird.
Instead, not taking insurance makes it possible for:
Longer, more frequent visits that allow time for us go deeper–not just check boxes
Health coaching that is integrated into your care, without needing a separate referral
Consistent, relationship-based care that won’t be interrupted if your plan changes or if I’m no longer considered “in-network”
Space to build trust and make decisions together, without insurance limitations in the background
More time for me to care for you, not on the phone for hours fighting insurance to approve your care
Whole Person Well Care is a practice rooted in individual autonomy and built around a simple belief: you deserve to be seen, heard, and supported in your health journey! This is not quick, one-size-fits-all medicine. I take the time to understand the full picture so we can get to the root of what’s going on, not just mask symptoms!
If that’s something that resonates with you and you need a provider in Washington state, schedule a visit today.
