Health Care Cost Trends in Wisconsin

1
Health Care Cost Trends in Wisconsin

• A few words about the sources of data
• Overall trends in health insurance premiums
• Prescription drugs
• Physician services
• Hospital services

2
Sources of the Data

• Bureau of Health Information
• Fiscal Surveys
• Hospital Rate Notices
• Office of the Commissioner of Insurance
• Group Health Insurance Index
• Milliman USA
• Kaiser Family Foundation

3
Overall Trends

• Insurance Premiums
• Hospital, Physician, and Prescription Drugs

4
Overall Trends in Health Insurance Premiums and
Major Components of Healthcare Services
Source Milliman USA OCI Group Health Insurance
Index. Note costs expressed as billed charges
per insured person.
5
Per Member Per Month Trends in Hospital,
Physician, and Prescription Drug Costs
Source Milliman USA. Note costs expressed as
billed charges per insured person.
6
Per Member Per Month Trends in Hospital,
Physician, and Prescription Drug Costs
Source Milliman USA. Note costs expressed as
billed charges per insured person.
7
Prescription Drugs

• Overall Trend
• Prescriptions per Person
• Prescriptions per Office Visit
• TV Ads and Prescriptions Filled

8
Prescription Drug Per Member Per Month Costs and
Utilization Trends
Source Milliman USA. Note costs expressed as
billed charges per insured person.
9
Average Prescriptions Per Office Visit
Source Milliman USA.
10
Prescriptions Per Thousand Members Compared to TV
Ad Expense
Source Milliman USA Kaiser Family Foundation.
11
Physician Services

• Overall Trend
• Major Components

12
Per Member Per Month Trends in Hospital,
Physician, and Prescription Drug Costs
Source Milliman USA. Note costs expressed as
billed charges per insured person.
13
Per Member Per Month Trends in Major Components
of Physician Services
Source Milliman USA. Note costs expressed as
billed charges per insured person.
14
Hospital Services

• Overall Trend
• Outpatient Utilization Trend
• Rate Increases Compared to Insurance Premium
  Increases
• Patient Care Margins Compared to Premium
  Increases
• Government Payment Shortfalls and Hospital Rate
  Increases

15
Per Member Per Month Trends in Wisconsin Hospital
Services
Source Milliman USA. Note costs expressed as
billed charges per insured person.
16
Trends in Wisconsin Hospital Utilization
Source Milliman USA.
17
Hospital Rate Increases Compared to Group Health
Insurance Premium Increases
Source BHI hospital rate notices OCI Group
Health Insurance Index.
18
Hospital Rate Increases Compared to Group Health
Insurance Premium Increases Two Year Rolling
Averages
Source BHI hospital rate notices OCI Group
Health Insurance Index.
19
Hospital Patient Care Margins Compared to Group
Health Insurance Premium Increases
Source BHI hospital rate notices OCI Group
Health Insurance Index.
20
Hospital Rate Increases and Patient Care Margins
Source BHI hospital rate notices BHI Fiscal
Surveys.
21
Government Payment Shortfalls and Hospital Rate
Increases
Source BHI hospital rate notices BHI Fiscal
Surveys 2001 data is preliminary 2002 data is
estimated.