Where Does Your Health Care Dollar Go? AHIP Has the Answer | Business Wire

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

    provider profits.

“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.

About AHIP

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
[email protected]