iLoveBenefits: Industry News Blog

Patient spending increases as costs are shifted to deductibles and coinsurance

According to a recent blog in the Wall Street Journal by Kaiser Family Foundation’s Drew Altman, while worker’s wages increased 32% from 2004 to 2014, here’s what happend to patient spending during that time period:

  • patient spending on deductibles increased 256%
  • patient spending on coinsurance increased 107%
  • patient spending on copays decreased 26%

Source: “The Next Big Debate in Health Care,” The Wall Street Journal/Think Tank, June 30, 2016, http://blogs.wsj.com/washwire/2016/06/30/the-next-big-debate-in-health-care/

Drug prices continue to rise

According to a recent survey by Consumer Reports, almost one-third of Americans said they had experienced a drug price hike in the past year. Source: “Consumer Reports Finds: Nearly One-Third of Americans Experiencing Price Hikes for Meds; Pricey Pills Impacting Retirement Plans, Family Life, Overall Health,” Consumer Reports Press Release, June 21, 2016, http://pressroom.consumerreports.org/pressroom/2016/06/consumer-reports-finds-nearly-one-third-of-americans-experiencing-price-hikes-for-meds-pricey-pills-impacting-retirement-pl.html

June 30, 2016 | Categories: Cost,drugs,healthcare | Tags: , , | Comments (0)

Diabetes Spending Reached $16,021 Per Capita in 2014

The Health Cost Institute recently released a study on healthcare spending for diabetes patients. Here are some key findings from the report:

  • Spending on people with diabetes reached $16,021 per capita in 2014, an $897 increase from 2013.
  • Health care spending for people with diabetes rose 6% compared to 3.2% for people without diabetes.
  • The number of ER visits among people with diabetes rose 8.1% annually from 2012-2014.
  • People with diabetes had 7x more filled days of cardiovascular drugs than those without diabetes.
  • Young adults (19-25) with diabetes had 4x more hospital admissions for mental health and substance use.
  • In 2014, insureds with diabetes spent $1,944 out of pocket compared to $752 for those without diabetes.

Source: Health Cost Institute, June 20, 2016

The high cost of health care is about the prices

The price of cancer drugs in the US is vastly higher than in other nations, according to new research that shines a light on how the cost of treating the life-threatening disease differs considerably depending on where the patient lives.

In the US, the median monthly price of branded cancer drugs, which are still protected by patents, was almost $8,700, compared with about $2,600 in the UK, $2,700 in Australia and $3,200 in China, according to the study, one of the largest of its kind.

http://www.cnbc.com/2016/06/06/financial-times-price-of-cancer-drugs-vastly-higher-in-us-according-to-study.html

June 11, 2016 | Categories: Cost,drugs,healthcare | Tags: , , , | Comments (0)

What are the long term implications to longevity

50% in Four Years – The Increase in Surgical Admissions

According to a recent report, the average price of a surgical admission for a child in 2010 was $35,423, but by 2014 it had risen to $53,372 – a more than 50% price increase. Source: “Higher Prices for Children’s Health Care Drove Spending Growth in 2014, While Use of Services Declined,” Health Care Cost Institute Press Release, May 16, 2016, http://www.healthcostinstitute.org/news-and-events/higher-prices-children%E2%80%99s-health-care-drove-spending-growth-2014-while-use-services-d

What is the avg. cost per prescription for specialty drugs?

 

 

2015 Cost, By Condition, Of Specialty Drugs Based On Avg. Price Per Prescription

 

  1. Hepatitis C – $17,090.18
  2. Sleep Disorders – $8,928.96
  3. Oncology – $7,158.53
  4. Cystic Fibrosis – $6,441.27
  5. Multiple Sclerosis – $4,549.22
  6. Pulmonary Hypertension – $3,892.31
  7. Inflammation – $3,035.95
  8. HIV – $1,272,01

 

Notes: Mercer 2015 national survey of employer sponsored health plans & express scripts 2015 drug trend report

 

Source: Mercer

Superior Customer Experience Correlates to 50% Higher Hospital Margins

Superior Customer Experience Correlates to 50% Higher Hospital Margins

Accenture recently published an analysis on customer satisfaction from the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS). Here are some key findings from the report:

  • Hospitals that deliver “superior” customer experience have 50% higher net margins than average hospitals.
  • The margin increase at urban hospitals is roughly eight times that of rural hospitals.
  • Academic hospitals had a 2.1% margin increase per 10% increase in HCAHPS score in 2013.
  • Margin increase correlated to a 10% consumer experience improvement grew 70% from 2008-2013.
  • Among the top 20% of patient experience performers, revenues grew 10.9% and costs grew 7.8% in 2013.
  • For profit hospitals had a 3.3% margin increase per 10% increase in HCAHPS score in 2013.

Source: Accenture, May 11, 2016

Putting a Positive Spin on a Critical Problem

53% of Exchange Consumers are Satisfied With Their Health Plan

Deloitte recently published their 2016 Survey of US Health Care Consumers. Here are some key findings from the report:

  • More than half (53%) of exchange consumers are satisfied with their health plan overall.
  • 54% of those with employer insurance and 74% of those with Medicare are satisfied.
  • 7 in 10 exchange consumers say they had no financial difficulty paying out-of-pocket costs last year.
  • 34% of exchange consumers feel prepared to handle future health care costs compared with 16% in 2015.
  • Nearly half of exchange consumers (45%) say they feel confident about being able to get affordable care.
  • 67% of exchange consumers looked online for help selecting a policy vs. 30% with employer coverage.

Source: Deloitte, May 11, 2016

The continuing rise in the cost of drugs

According to a recent report, in 2015:

  • The total spending on medicines in the U.S.–net of off-invoice discounts and rebates–was $309.5 billion, up 8.5% year over year
  • A total of 4.4 billion prescriptions were dispensed, up 1% year over year
  •  The average patient cost was $44 per prescription for brand prescriptions filled through a commercial plan, up more than 25% since 2010

Source: “IMS Health Study: U.S. Drug Spending Growth Reaches 8.5 Percent in 2015,” IMS Health News Release, April 14, 2016, http://www.imshealth.com/en/about-us/news/ims-health-study-us-drug-spending-growth-reaches-8.5-percent-in-2015

April 21, 2016 | Categories: Cost,drugs,healthcare | Tags: , , , | Comments (0)
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