The cost of health insurance is directly in proportion to the cost of health care. According to several sources, including the Centers for Medicare and Medicaid Services, approximately 10 cents of every dollar is spent on “insurance costs”. The remainder of your insurance dollar goes directly to the cost of health care. The following chart outlines where these dollars go:

COMPONENTS OF RISING HEALTHCARE COSTS [LINK]

Source: PricewaterhouseCoopers

Health care costs have been increasing at a dramatic pace and understanding why can help you control your own costs. The components of health care are not necessarily contributing to the rising costs equally. The following chart provides a good understanding of where these increased costs are coming from:

WHERE DO YOUR INSRURANCE DOLLARS GO?

Source: Centers for Medicare & Medicaid Services

In order to be better consumers, it is important that you have data to know the costs and quality of the services between competing health care providers. WAHU continues to work to provide consumers with this information. There are many private initiatives that have taken great steps to collect and disseminate such data and WAHU is pleased to work with these initiatives as a far better alternative than government regulations. However, where the private market fall short in providing such data, WAHU will continue to explore all efforts to get this information to you, the consumer.

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