This information is put out by the trade organization for health plans, so keep that in mind, but it is a very useful picture of where all the health care dollars go. Look at the graphic of the dollar and what percent of spending goes to what. This is spending from a health plan perspective for commercial, or employer-based and individual health plans. As shown, about 40% goes to hospital inpatient and outpatient care. That is the sector that needs focussing on first; as the piece says, hospital prices have risen rapidly, due to consolidation. Hospitals are the primary villain behind spending increases and I have suggested multiple reforms that will fix that. Prescription drug costs have risen greatly and there are simple steps that could be taken to reduce that spending as well. Note also that taxes and fees add significantly to the cost. Government could get its grubby paws off the health care dollar and help out. The steps for reform listed in the AHIP piece all make sense and would help greatly, but one I am sure that they accidentally left out is the need to increase competition among health plans, we have far too much concentration and market power in that sector as well. (AHIP Piece)
