Health care costs are a major concern for New York residents and businesses, as well as state lawmakers and regulators. The continued increase in the cost of health care puts enormous strain on local and state budgets and inhibits the ability of employers to create and grow jobs.
New York health care spending is 22% higher than the rest of the nation.
What’s Driving Health Care Costs?
Recent government reports show health care costs are growing at the slowest rate in the last 50 years. Although, while the rise in health care spending in the United States has continued to slow down in the past four years, health care costs continue to grow at a faster pace than other spending.
Similarly, the growth of health insurance premiums in New York has been held in check in recent years. However, growth in medical expenses continues to be the main factor in the growth in the cost of premiums, and little has been done to control these underlying cost drivers. As the cost of health care rises, so do premiums. Making health care more affordable requires addressing the underlying factors driving health care costs.
Where Does the Premium Dollar Go?
Health insurance premiums are driven by health care costs. In New York, plans are required to spend 82 cents of every $1 on medical services, such as doctor visits, prescription drugs and hospital stays. Health insurance premiums and health care costs are inextricably linked.