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AHIP Statement on National Health Expenditure Data
Date:1/6/2009

Health insurance premiums remain stable

WASHINGTON, Jan. 6 /PRNewswire-USNewswire/ -- Karen Ignagni, President and CEO of America's Health Insurance Plans, issued a statement on new data released by CMS today showing that health spending in the United States grew at the lowest rate in a decade at 6.1 percent in 2007.

According to the CMS report, private health insurance premiums grew 6.0 percent in 2007, the same rate as in 2006, but much lower than the recent peak of 10.7 percent in 2002. CMS also found that health plans' administrative costs were 12.2 percent in 2007, less than the 12.8 percent in 2006.

"Health plans have implemented innovative programs to reduce the rate of growth of health care costs, improve health care quality, and streamline administrative processes," said Ignagni. "Today's report confirms that health insurance premiums reflect the underlying cost of medical care."

"While substantial progress is being made, much more work needs to be done to put health care spending on a sustainable path and to ensure that every American has affordable health care coverage. As Congress pursues health care reform, reducing the rate of growth of health care costs must be a top priority," said Ignagni.

AHIP's Board of Directors has put forth a comprehensive reform proposal to cover all Americans, improve quality, and contain costs. This proposal urges Congress to set a national target of reducing the future growth of health care costs by 30 percent and to establish an independent advisory board to provide a road map on how to achieve these cost reductions.

To learn more about this proposal and AHIP's efforts to advance health care reform, visit www.AmericanHealthSolution.org.

Providing Health Benefits for Over 200 Million Americans.


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SOURCE America's Health Insurance Plans
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