How Premium Dollars are Spent
Do you know how health insurance companies actually spend the dollars
you pay in premiums? You might be surprised.
Survey
results show that Wellmark members in Iowa and South Dakota believe
only $.49 of every premium dollar pays for actual health care expenses
(physician, hospital and pharmacy expenses). The truth is about $.84 of
each premium dollar pays for health care services.
Wellmark Blue Cross Blue Shield premium dollar distribution (5-year
average)
Move your mouse over each section of the graphic below to see how your
Wellmark Blue Cross and Blue Shield premium dollar is spent.
Source: Wellmark, Inc., 2000-2004 actual expenses for
fully-insured commercial business. Figures shown represent a five-year average.
What does this mean?
Wellmark Blue Cross and Blue Shield holds the line on our costs, while
continuing to provide maximum health care benefits for our members. We
seek a small operating
margin of 2%. We have no stockholders seeking profits.
| Operating income divided by revenues,
expressed as a percentage |
|
