If you are wondering where all your health insurance money is going, you’re not alone. Unfortunately, many people feel like they are dishing out large amounts of money for health insurance when it seems they get nothing left in return. So, where is that money going?
Where does my health insurance money go?
You’re probably feeling exasperated by the amount of return you receive on all your high monthly payments on your health insurance. Why does it seem like your premiums continue to increase while your benefits remain the same or even decrease?
UBERDOC’s CEO and founder Paula Muto says, “Insurance premiums are higher than ever but so are out-of-pocket expenses. If it sounds like someone is keeping the money, you are correct. That’s why smart consumers look for doctors with transparent pricing. It’s fast, simple, and the safest way to avoid delays in care.”
It can be difficult to always feel like you have to look over your shoulder when dealing with doctors and medical bills. However, there are some options to help you get the care you need at a price you can afford. Continue reading for more on this later. For now, let’s take a look at where some of your hard-earned money goes when making your health insurance payments.
Marketing for insurance is a lucrative business. Statistics show that in the United States, marketing costs health insurance companies $30 billion a year. In 2021, the health insurance industry spent a whopping $229 million on advertising alone.
While you work hard for your money, many insurance companies use this hard-earned money to produce television commercials, print ads, and online advertising. Online advertising for health insurance companies has become quite competitive, where big named companies bid on keywords used in searches.
The largest portion of your health insurance premiums goes to prescription drugs. Whether or not you use prescription drugs, the insurance money goes toward someone’s medication. This could be medication from a pharmacy as well as any medication that is administered in a doctor’s office or during a hospital stay.
Actual Medical Expenses
Yes, your insurance premiums do go toward actual medical expenses. A large portion of your premium goes toward two areas of medical expenses: outpatient hospital costs, inpatient hospital costs, and provider visits.
Outpatient Hospital Costs
Hospitals provide many outpatient visits. These include the following:
- ER visits
- Lab tests
- X-Ray, MRI, Ultrasound, etc.
- Outpatient surgery
Depending on how your insurance is set up, these services are often covered partially or completely. You might be surprised to find that outpatient services take up more of your insurance premium than inpatient hospital visits.
Inpatient Hospital Costs
Inpatient hospital costs are known to cost a fortune. Hospitals see dollar signs when patients with insurance walk in their doors. This is because they see it as an opportunity to squeeze as much money from the insurance company as possible. Sadly, this can result in higher premiums or even unexpected bills for you.
Another area of significant spending from your insurance company is provider visits. Provider visits include seeing your family doctor and receiving care at an urgent care or clinic. Any supplies or equipment used in your visits, as well as the salary for the doctors and nurses that see you, are included in this.
Frustrated With Insurance Premiums?
Paula Muto asks, “Do you trust your insurer or your doctor? Seeing how much of your premium is spent on TV commercials while your prescription is being denied says it all. Now there is an answer. UBERDOC Plus.”
If you need help finding in-network doctors, UBERDOC can help! UBERDOC allows you to get the care you need in an easy and affordable way. We offer both in-person and telemedicine appointments, ensuring that you have access to the healthcare you need, no matter how busy or restrictive your day is. To find out more about how UBERDOC can help you, contact us today!