What’s driving insurance premium increases? Hint: It’s not prescription drugs

Allyson Funk   |     August 2, 2016   |   SHARE THIS

A new analysis from Avalere Health looks at 2017 proposed health insurance premium increases. As in 2016, insurers’ own data point to outpatient spending as the largest expected driver of premium increases in 2017. The key takeaway: Hospital spending – inpatient and outpatient – accounts for nearly half (45.3 percent) of projected rate increases.

“Preliminary data indicate that drugs are not likely to have a disproportionate impact on premiums in 2017,” Avalere said, highlighting that outpatient spending continues to drive premiums (representing 29.9 percent of increases).


Prescription drugs can be a part of the solution, providing unique value to patients by helping to lower provider and hospital spending when patients are able to successfully manage their conditions through medicines.

Allyson Funk

Allyson Funk Ally is a former senior director of public affairs at PhRMA focused on advocacy issues for the biopharmaceutical industry. Her expertise includes Medicare, Medicaid, 340B, health reform and more. Prior to PhRMA, her experience included leading health communications for a large membership organization, supporting public affairs clients and working for the governor of Louisiana.

Topics: Access, Drug Cost, Health Insurance, Access Better Coverage, Hospitals

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