AHIP Analysis Finds High Healthcare Spending on Prescription Drugs by Payers

June 10, 2021

America’s Health Insurance Plans (AHIP) has found that the largest proportion of payers’ healthcare spending goes to prescription drugs, upon analyzing data from 30 payers between 2016 to 2018. Closely behind this leading category are hospital costs and provider visits. The study reflects an updated method to calculate prescription drug costs. Healthcare costs are facing increased scrutiny as various stakeholders consider cost-saving methods.

“Some employers have said that the healthcare spending burden would become unsustainable in the next five to ten years, according to a past Kaiser Family Foundation (KFF) survey…The biggest chunk of the healthcare dollar went towards prescription drugs, with 21.5 cents dedicated to payments for outpatient prescription medications and prescription medications administered in a physician’s office or clinic.” Read more here.

(Source: Victoria Bailey, Health Payer Intelligence, 6/8/21)

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