Stethoscope and health care costsCompared to two years ago, a smaller portion of premiums are going toward prescription drug costs, while a larger portion is going toward in-patient care

Understanding health care costs is complicated, to say the least. There's the amount billed for a service, the negotiated rate ultimately paid, and then how much the service actually cost the provider. And where does that money go? There are facility fees, provider fees, drug costs, administrative expenses, and so forth.

America's Health Insurance Plans (AHIP) recently released an updated breakdown of how American's health care premiums are allocated among the various health care services.

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Emily Payne

Emily Payne is director, content analytics for ALM's Business & Finance Markets and former managing editor for BenefitsPRO. A Wisconsin native, she has spent the past decade writing and editing for various athletic and fitness publications. She holds an English degree and Business certificate from the University of Wisconsin.