WASHINGTON–(BUSINESS WIRE)–As health care costs take a bigger bite out of consumers’ wallets year
over year, Americans deserve more information about where their health
care dollars go. That’s why America’s Health Insurance Plans (AHIP)
tapped research firm Milliman to take a closer look at the dollars
spent on health care premiums.
Milliman and AHIP researchers examined 2014-2016 data gathered from
commercial health plans – coverage that people get through their jobs,
or buy on their own in the individual market. Here are some highlights
from what we found about how those premium dollars are invested:
The greatest percentage – 23.2 cents – goes to pay for prescription
22.2 cents goes to pay your doctors, while another 20.2 cents
pays for all other costs at your doctors’ offices and clinics.
16.1 cents pays for hospital stays.ECFC Submits Testimony to House Subcommittee on the Benefits of Consumer-Directed Health Plans | Business Wire
WASHINGTON--(BUSINESS WIRE)--ECFC, the leading nonprofit organization promoting choice in benefit solutions, today submitted testimony to the House Ways and Means Subcommittee on Health. The hearing, “Lowering Costs and Expanding Access to Health Care through Consumer-Directed Health Plans” will examine trends in enrollment and demographics for health spending account holders and the benefits of consumer-directed health care. It will also examine policies designed to give more consumers access to tax-favored savings accounts, including Health Savings Accounts (HSAs).
ECFC is dedicated to preserving and expanding employer-provided tax-advantaged benefit choices for working Americans, including account-based benefit plans which provide benefits in areas such as health care, child care, and commuting. ECFC submitted a Statement for the Record to the Subcommittee.
In the statement, ECFC cited the National Center for Health Statistics’ report, that states many employers are moving toward higher deductible health plans or plans that increase the cost sharing amounts borne by employees. Consequently, ECFC stated, "consumer-directed benefit arrangements, such as FSAs, HRAs and HSAs, are of increasing...
4.7 cents goes to pay federal, state. Local taxes.
1.8 cents pays for customer engagement, including customer
service operations, while another 1.6 cents pays for care management,
including disease management and wellness programs.
1.6 cents pays for activities related to claims, including programs
to battle fraud, waste and abuse.
Only 2.3 cents of every health care dollar goes to health insurance
“Americans value services that deliver real results – improving health
and wellness, coordinating care with doctors and nurses, eliminating
fraud and abuse. Plans use a meaningful part of premiums to make
coverage more efficient and effective,” observed Matt Eyles, incoming
president and CEO of AHIP. “But as prescription drug prices and medical
costs continue to rise, it forces premiums higher for hardworking
American families. Health plans work hard to negotiate lower costs and
premiums for their members. We need to come together to find new ways to
provide people with the care they need at a price they can afford.
“We support a lot of the great work being undertaken by Congress, the
Administration and the states to improve health care costs and benefits,
including more support for services that help people stay healthy. And
insurance providers have invested in many new approaches to improve
their members’ health – as well as the prices they pay. We'll continue
to work hard toward the goal of affordable coverage and care. That
every American can have the peace of mind of knowing that a health care
emergency won’t break the bank.”
the health care dollar.
more about the research methodology.
America’s Health Insurance Plans (AHIP) is the national trade
association representing the health insurance community. AHIP’s members
provide health and supplemental benefits to millions of Americans
through employer-provided coverage, the individual insurance market.
public programs such as Medicare and Medicaid. AHIP advocates for
solutions that expand access to affordable health care coverage to all
Americans through a competitive marketplace that fosters choice,
quality. Innovation. Visit www.ahip.org
for more information.
America’s Health Insurance Plans
Kristine Grow, 202-778-3227