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.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events.
  • Access to other award-winning ALM websites including and

Already have an account?

Emily Payne

Emily Payne is the current deputy editor 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.

More from this author



Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including and
  • Exclusive discounts on and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.