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Where Your Premium Dollars Go

Where Your Premium Dollars Go

The rising costs for medical services continue to drive premium dollars higher. At BlueCross BlueShield of Tennessee we work hard to keep premiums as affordable as possible and to ensure that the premiums you pay are going toward the care you receive. In fact, we pay out nearly $35 million in claims each working day to the providers that deliver your care.

So, how much does BlueCross BlueShield of Tennessee spend on health care costs?  The graphic below shows how our members’ premium dollar was used in 2012:

medical dollar 

As seen in the graphic above, the majority of premium dollars currently paid by our members is spent directly on patient care. The Patient Protection and Affordable Care Act of 2010, requires insurers to spend specific amounts on care. For large employer group coverage that means 85 percent of every premium dollar must be spent on patient care. For small employer groups and individuals, it’s 80 percent. The level of transparency the law requires will help make certain that future premium increases reflect only the rising costs of care – and that all Americans recognize and act on our shared responsibility for bringing those costs under control.