AHIP November 12, 2020

Americans deserve to know how their health care dollars are being used. America’s Health Insurance Plans (AHIP) has taken a closer look, analyzing data from 2016-2018 to understand where Americans’ health care premium dollars are being spent in the commercial market (employer-provided coverage and individual market). This analysis shows that 81.6 cents of every premium dollar goes directly to prescription drugs and medical services, with prescription drugs making up the biggest individual expense at 21.5 cents out of every dollar spent.

AHIP researchers analyzed premiums for typical commercial health insurance plans. Several changes were made from the 2018 analysis, such as presenting net prescription drug spending, including the impact of negotiated rates, and making the categories easier to understand.

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Topics: Employer, Govt Agencies, Healthcare System, Insurance, Medical Devices, Patient / Consumer, Pharma / Biotech, Pricing / Spending, Provider
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