Health Insurance

[KCUnited]

SOCIAL INFLATION

Issue: Social inflation is a term that describes how insurers’ claims costs are increasing above general economic inflation. This is generally thought to be due to a trend in increasing litigation costs brought by plaintiffs seeking large monetary relief for their injuries.

[Chief Roundup]

Originally Posted by KCUnited

SOCIAL INFLATION

What about just regular ole inflation? You know the price of goods to everyone. When inflation hits several levels that all pertain to one entity it makes that one entity struggle due to being hit with several price increases to complete one task because of inflation.

Try to build something now. The electrician is more expensive, the plumber, the HVAC, the carpenter, etc. The one entity, owner/builder, in this scenario, is getting hammered.
It is no different in most everyday situations including medical insurance or the costs of operating a hospital, rural health clinic, nursing home, procedure space, doctor's office, etc.
All those price increases must be spread out to all parties and individuals or they could not be absorbed and survived.