Health insurance premiums have grown at double the rate of hospital prices, AHA says

The cost of health insurance premiums has grown at nearly double the rate of hospital prices in the last decade, according to a report from the American Hospital Association. 

Advertisement

Citing data from the Kaiser Family Foundation and Bureau of Labor Statistics, the AHA said hospital prices increased an average of 2 percent annually from 2010 to the beginning of the COVID-19 pandemic. In contrast, health insurance premiums have increased 4.4 percent per year on average over the same period.

Annual premiums for a family of four reached $21,342 in 2020, with workers on average paying $5,588 toward the cost of their coverage, according to the foundation. 

The AHA also broke down other key reasons health spending is growing, including increased use of healthcare and increased intensity of services.

Read the full report here

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.