Rising Insurance Premiums
Out-of-control drug prices and drug spending is driving large hikes in insurance premiums.
- In fact, according to insurers’ own data, hospital spending and professional services are the largest drivers of insurance premium growth.
- In 2016, 75% of premium increases were directly attributed to hospitals and doctors—not prescription drugs—which only accounted for 17.5% of the increase, according to a study from Avalere, an independent analytics firm.
- In 2017, the same pattern is emerging. Spending on hospitals and doctors is driving 73% of the increase in premiums—not prescription drugs, which account for only about 14 cents of every one dollar increase in insurance premiums – according to Avalere.
- And spending on drugs helps to reduce those other, faster-growing components of healthcare expenses like hospital stays and other more expensive services and procedures.