A Quick Look At The Problem

The past two decades have brought a dramatic increase in health care spending. Money spent on health care in the U.S. has quadrupled in the last 20 years – exceeding every other country in the world. Not only does the U.S. spend more on health care than any other country, but Tennessee spends more than most other states. Nationally, the health services industry growth per capita has increased 450 percent since 1977. In Tennessee, the growth rate has increased 674 percent.

Why does health care cost so much?

• People just can’t get enough. From orthopaedic and diagnostic services to outpatient surgery and prescription drugs, consumers are spending more on health care than ever before.
• Technology doesn’t come cheap. Medical technology continues to expand by leaps and bounds – and so do the associated costs.
• Show me the money. As the cost of doing business continues to rise, doctors, hospitals and other health care providers are asking to be compensated more for the services they offer.
• What you don’t know. With the copay system, you are only required to pay a small portion of the cost of medical services and drugs – generally between $20 and $30 for each doctor’s visit or prescription. You don’t see the real price tag.

Where does the money go?

It helps to see how each medical dollar is being spent. The typical BlueCross BlueShield of Tennessee medical dollar is distributed this way: