More than half of the $14 billion in medical bills Americans pay each year come from their healthcare providers, according to a new study from The Hill.
The study found that only 6% of the bill is due to the medical providers themselves, while the rest is owed to their employees and/or providers.
In contrast, an additional 4% of bills is due the health care providers, including doctors, dentists, optometrists and chiropractors.
The study is based on data from the Health Care Cost Institute (HCCI), a nonprofit research and advocacy group that works to identify solutions to cost problems facing Americans.
The report found that for each $1.00 spent on health care, taxpayers pay an additional $1,000.
The remaining money comes from insurance premiums, out-of-pocket expenses and deductibles.
This isn’t the first time the Hill has looked at how the healthcare industry is paying for medical bills.
In June, the Hill reported that insurers were shelling out more than $1 trillion per year in medical costs for their employees, and that many insurers are spending much more than that on medical care themselves.
For instance, Blue Cross Blue Shield of California (BCBS), the nation’s second-largest health insurer, said that its employees are spending more than 20% of their paychecks on medical insurance, compared to about 12% for the typical employer.
In fact, BCS plans to spend more than double the average employer on medical costs in the next five years, according a statement.
Meanwhile, private insurance plans are spending even more on medical expenses than they are on wages.
According to the National Conference of State Legislatures, in 2018, insurers spent $2.8 trillion on medical claims, a 35% increase from 2017.
The health care industry is spending about half of this money, the report found.
Meanwhile for employers, the healthcare cost is growing faster than the average wage.
According the HCCI, the average healthcare worker in 2018 was earning about $40,000 a year, and in 2019, the figure was $57,000, or nearly 14% more than the national average.
In 2020, the HC CI reported that employer healthcare costs were up by more than 10% from 2017, but only 1% from 2020 to 2021.
For comparison, average wages increased just 3.3%.
The Hill also reported that more than 70% of all health insurance premiums paid by employers are paid by health insurance plans themselves.
According an analysis of data from ACA data, nearly half of all employer-sponsored healthcare plans spent more than 15% of premiums on administrative expenses, with plans spending an average of 6.5% on administrative costs.
Health insurance costs are only a fraction of the overall healthcare costs, however.
According with a 2017 survey from Avalere Health, just 22% of workers and workers with children pay for their health care out of pocket.
This is up from 12% in 2017.
The report also found that healthcare costs have been growing steadily over the past decade.
In 2020, health care costs grew more than 7% on average, compared with 1.4% in 2000.
The increase was largely due to inflation, the increase in the cost of prescription drugs and the growth of new treatments.
The authors also noted that healthcare spending grew more rapidly for older workers, who were paying an average $4,400 more per year, compared in 2020 to their counterparts in 2000 and 2000.