Why are premiums going up? Where does the money go?
$674 every second.
That’s how much the Council’s seven member health insurers paid for our medical care in 2014—$58.3 million every single day of the year. Health insurance premiums directly correspond to the total cost of our medical expenses: 90 cents of every premium dollar goes straight to paying for the care we need. Simply put, health insurance premiums are so expensive because care is so expensive.
In all, expenses for our care in 2014 totaled $21.3 billion. The amount we’ve spent on our medical bills increased more than 20 percent between 2010 and 2014. Our premiums are increasing because the medical care Minnesotans need keeps getting more expensive. To solve the problem, it helps to understand why our medical care costs so much.
WHERE DID THE MONEY GO?
As overall expenses for care continue to increase, Minnesotans are spending less of their health care dollar on care provided by physicians and in hospitals and more on care provided by other health professionals and in outpatient clinics. We’re also spending more on prescriptions and supplies.
Learn the details and download a PDF, here.
For more about what’s happening with prescriptions drugs in Minnesota, read Why Are Prescription Drugs So Expensive?