Why are Americans frustrated with the health care system?

(NewsNation) — Rising medical costs and denied claims have many Americans feeling fed up with the nation’s health care system.

The data paints a gloomy picture: The U.S. spends significantly more on health care than other countries (and yet has worse outcomes), insurance costs are rising and millions of people are buried in medical debt.

Those statistics underpin a mounting frustration that recently boiled over following the murder of UnitedHealthcare CEO Brian Thompson. Instead of condemning the brazen attack, many celebrated.

The outpouring of rage aimed at health insurance companies follows a two-decade period in which medical prices have risen faster than overall inflation.

Since 2000, the price of medical care has increased by more than 120%, outpacing the 86% gain for all goods and services, according to the Peterson Center on Healthcare and Kaiser Family Foundation (KFF).

Over the same period, health care conglomerates including UnitedHealth Group and Cigna Group have seen their stocks surge.

Health insurance premiums have risen

In 2024, the average health insurance premium for families hit $25,572 a year, up 7% for the second year in a row, according to KFF.

Of that total, workers contributed an average of $6,296 while employers contributed $19,276.

KFF pointed out that employers have borne much of the premium hike in recent years while workers’ annual premiums are up less than $300, about 5%, since 2019.

But higher deductibles have many families paying more out of pocket before their insurance kicks in. Once rare, high-deductible health plans have become increasingly popular as workers look to minimize their monthly premiums.

The percentage of workers enrolled in high deductible plans skyrocketed from 4% in 2006 to 29% in 2023, KFF data shows.

A recent Gallup poll found nearly 80% of Americans are dissatisfied with the cost of health care and most (54%) think the nation’s health care system has “major problems.”

A new report from the Government Accountability Office (GAO) suggests health insurance costs will likely rise again in 2025. In part, due to growing market concentration among fewer insurance companies.

How common are denied claims?

Nearly one in five insured adults (18%) said they experienced a denied claim in the past year, according to a KFF survey. The problem was more common among people with employer-sponsored insurance (21%) compared to people with Medicare (10%) or Medicaid (12%).

A separate KFF analysis found that major medical insurers offering plans via the Healthcare.gov marketplace rejected nearly one in dicw in-network claims in 2021.

However, denial rates varied significantly across plan issuers, ranging from 2% to 49%. In total, HealthCare.gov issuers denied 48.3 million in-network claims in 2021, KFF found.

A recent survey from credit firm Experian suggests denials of health claims are increasing, rising 31% in 2024 from 2022.

Of the health care staff Experian surveyed, 73% of providers agreed that claim denials are increasing.