People typically associate health care costs with monthly premiums; however, there are additional expenses you should take into account that could add up and have an effect on how much money is spent each year on healthcare regardless of having insurance or not. One such cost is your deductible payment, which represents what amount must be covered before your insurance provider begins covering it.
Other expenses you should keep in mind are prescription costs and visit fees to doctors or other healthcare providers. These prices can differ based on where you live as some areas have more competition from healthcare companies than others, while procedures will cost differently if performed at either a hospital or outpatient facility.
In 2022, the average annual premium for family coverage under an employer-sponsored health insurance plan was $8,435 – roughly $703 monthly premium – Workers contributed about 6 percent towards this cost; employers covered the remainder. This increase from 2017 when it stood at $7911, when this number stood at just over 7 thousand 11 dollars per annum.
Medical and pharmaceutical supplies represent a substantial proportion of health care spending in the US, followed by hospital and physician/clinical services expenditures. Hospital and physician/clinical service expenditures experienced the fastest compound annual growth. Specialty drugs have become an increasing part of overall spending on medications.
As America transitions away from a system of private health insurance and toward one offering universal, accessible health coverage, it’s crucial that we understand which factors contribute to increased or decreased health care costs. Understanding these trends could help you keep your current plan or find something better suited to you.
This NYHealth-funded chart book aggregates existing state and national research on healthcare costs, spending and payments into an easy-to-use tool that synthesizes diverse sources of data. It analyzes rising healthcare costs; drivers of spending growth; variations across states and regions in spending; variations between quality care services provided versus spending; as well as any correlations between quality measures and spending levels.
Learn about key issues and challenges related to health care costs and availability by downloading this full chart book or viewing individual slides. All charts may be freely used for any noncommercial purpose with proper attribution given to NYHealth; any questions regarding republishing this material, please reach out!