Where Does Your Health Insurance Premium Go?
One of the most common questions asked to health insurance providers is – where does my premium dollar actually go? There's a general misconception that insurance companies absorb most of their customers' premium dollars as profit, but that's not true. In reality, insurance providers claim just three cents of each dollar as profit. Where does the rest go? The answer might surprise you.
Breaking Down Your Premium Dollar
At Blue Cross Blue Shield of North Carolina, $0.86 out of every dollar goes toward covering the medical costs of our customers. The remaining $0.14 goes toward everything else, such as profit, consumer services, provider support, marketing, and state and local taxes, ACA taxes and fees, compliance, claims, processing, and administration.
Out of the $0.86 used to cover medical costs, $0.35 is spent on hospitals, $0.33 is spent on physicians, $0.14 is spent on medications, and $0.05 is spent on all other miscellaneous medical expenses.
The Affordable Care Act of 2010 requires all insurance providers to use at least $0.80 of every premium dollar from individual and small group customers to pay customer claims and support initiatives designed to improve the quality of care. For large group customers, the minimum requirement is $0.85. BCBSNC has exceeded that standard for years, even before the ACA was put into effect. In fact, in 2012, BCBSNC paid $260 million more toward health care expenses than was required by the federal government at the time.
Choose Your Plan From Schnitzer-Slate Health Insurance Provider in Wilmington NC
If you're looking for an affordable health insurance plan from a health insurance provider in Wilmington NC that has the best interests of its customers in mind, then call Schnitzer-Slate today. We're an authorized provider of BCBSNC insurance plans and as such we have a host of flexible health care plans for you to choose from. Just call us at 910-392-7020 and one of our agents will help you choose the right policy for your needs and budget. Or, just visit our website at http://healthplannc.com/ to learn more about affordable health insurance in Wilmington.
Breaking Down Your Premium Dollar
At Blue Cross Blue Shield of North Carolina, $0.86 out of every dollar goes toward covering the medical costs of our customers. The remaining $0.14 goes toward everything else, such as profit, consumer services, provider support, marketing, and state and local taxes, ACA taxes and fees, compliance, claims, processing, and administration.
Out of the $0.86 used to cover medical costs, $0.35 is spent on hospitals, $0.33 is spent on physicians, $0.14 is spent on medications, and $0.05 is spent on all other miscellaneous medical expenses.
The Affordable Care Act of 2010 requires all insurance providers to use at least $0.80 of every premium dollar from individual and small group customers to pay customer claims and support initiatives designed to improve the quality of care. For large group customers, the minimum requirement is $0.85. BCBSNC has exceeded that standard for years, even before the ACA was put into effect. In fact, in 2012, BCBSNC paid $260 million more toward health care expenses than was required by the federal government at the time.
Choose Your Plan From Schnitzer-Slate Health Insurance Provider in Wilmington NC
If you're looking for an affordable health insurance plan from a health insurance provider in Wilmington NC that has the best interests of its customers in mind, then call Schnitzer-Slate today. We're an authorized provider of BCBSNC insurance plans and as such we have a host of flexible health care plans for you to choose from. Just call us at 910-392-7020 and one of our agents will help you choose the right policy for your needs and budget. Or, just visit our website at http://healthplannc.com/ to learn more about affordable health insurance in Wilmington.