Analysis

Dig deep: Impacts and implications of rising out-of-pocket health care costs

Uncovering the hidden costs of health care

Consumers are paying more of their health plan premiums and experiencing higher OOP cost-sharing for all types of health care services. These OOP spending increases extend beyond consumers to impact hospitals, life sciences companies and health plans. How should stakeholders respond?

Impacts and implications of rising out-of-pocket health care costs

Even though more consumers are gaining health insurance coverage, they are by no means insulated from the burden of health care costs. Consumers are paying more of their health plan premiums and experiencing higher out-of-pocket (OOP) cost-sharing for all types of health care services. Moreover, government estimates of health care spending do not take into account discretionary consumer spending on a number of products and services; Deloitte’s Hidden Costs Analysis shows these purchases add considerably to the total.

OOP spending increases extend beyond consumers to impact hospitals, life sciences companies and health plans. What are the implications for these stakeholders?

This report:

  • Examines the impacts and implications of the increasing consumer health care cost burden.
  • Shares results from Deloitte’s Hidden Costs Analysis, which reveals how consumers’ OOP purchases add considerably to the total cost of health care.
  • Explores anticipated OOP spending changes resulting from the 2014 expansion of coverage through health insurance marketplaces and Medicaid.
  • Suggests strategies for hospitals, life sciences companies and health plans to deal with the impacts of rising consumer OOP costs.  

Hidden Costs

 

Government data shows rising OOP spending for consumers, but excludes some types of health-related items and services that can add significantly to the total amount and consumer share of spending. This infographic exposes these “hidden costs” that account for almost one-fifth of total health care spending.

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