Here’s Where Your Health Care Dollars Go
Here’s Where Your Health Care Dollars Go
Amidst rising health care costs, a report from America’s Health Insurance Plans (AHIP) and research firm Milliman breaks down how the percentage of each insurance premium dollar is spent.
The data, taken from 2014 to 2016, covers premiums paid in traditional, commercial health insurance plans. These are the ones that customers get through their job or buy on the individual market. (RELATED: Number Of Uninsured American’s Didn’t Change In Trump’s First Year)
Prescription drugs take up the largest chunk of premiums, coming in at 23.2 percent. With rising prescription drug prices, this number may drive premium increases in the future.
Some of the lowest percentages are customer engagement, like advertising, at 1.8 percent and company profit at 2.3 percent.
As expected, prescriptions, hospital stays, and doctor’s visits will contribute the most to premium increases. “We need to come together to find new ways to provide people with the care they need at prices they can afford,” Matt Eyles, incoming president and CEO of AHIP, stated in the Tuesday press release.
Several other factors may increase health insurance premiums as well. The repeal of the individual mandate is projected to increase premiums by 10 percent per year, according to the Congressional Budget Office. This is due to healthy payers opting out of the health insurance market.
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Sure is empty down here...