Source: America’s Health Insurance Plans (AHIP)

What is this about?

This edition of Connections newsletter provides an informative 5-page infographic plus explanatory text describing the typical distribution patterns of commercial health insurance expenditures for 2018 to 2020.  The methodology for the infographic is also described.

The top five (5) types of expenditures from commercial health insurance plans are:

1^st     Prescription Drugs                         22.0%

2^nd   Outpatient Hospital Costs           19.9%

3^rd   In-patient Hospital Costs              19.0%

4^th   Doctor visits                                      11.8%

5^th  Other Outpatient Care                      6.2%

 

Why is this important?

This document can be used to help educate employees about the general expenditure pattern for commercial health insurance.  This gives employees a sense of what health care dollars are spent on and the general magnitude of those expenditures.  Particularly with the uptick in health care claims costs after COVID, this is good for employees to know and understand.

 

What can you do with this document?

• First, this document answers the general question…”What are our employer health care dollars spent on?”
• Next, skim the document for the types of health care services that your health plan dollars are spent on and the magnitude of those expenditures on average.
• Next, examine the specific components of health insurance expenditures that define overall health care expenditures.
• Next, lay out in your program work plan how you plan to use this information during the year ahead.
• Next, implement your work plan details.

In summary, this document contains a detailed national overview of how employer health care dollars are spent and their relative magnitude. This is helpful information for employees to learn about their local health plan’s expenditures.

(Everyone can now download this document)

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I hope this tool helps you reach your wellness programming goals!  Drop me a note and let me know if you found it to be helpful.