AHIP follows the money: Here are the factors driving insurance premiums higher
May 22, 2018
The greatest percentage of the health insurance premium dollar goes to prescription drugs, according to America’s Health Insurance Plans.
Prescription drug prices and medical costs, which account for more than 45 percent of the average dollar, continue to rise, AHIP said, forcing premium increases.
The report examined two years of data from commercial plans and from the individual market, from 2014 to 2016.
Profit accounts for only 2.3 cents of every dollar, according to AHIP. On the other hand, prescription drugs, long known to be a big payer item, account for 23.2 cents of every dollar.