It seems like almost a daily event…I’m meeting with a client to discuss their renewal and they say, “Why are health care costs rising faster than the rate of inflation (CPI)?” Like me, I’m sure this question takes you many places because the answer can be complicated — but is it really?
New England is home to 4 of the top 10 health plans in the country. Our health plans are not for profit and operate their businesses with around 10 cents of every premium dollar. They deliver broad access to high quality care and earn high marks in member satisfaction. Could our health plans reduce their administrative costs? Sure, but by how much? And why aren’t we focusing on the real problem?
