Healthcare Insurance

AAHP unveils new PricewaterhouseCoopers report detailing reasons for rising healthcare costs

Published in Managed Care Weekly Digest, June 24th, 2002

The American Association of Health Plans (AAHP) released a report conducted by PricewaterhouseCoopers that identifies the specific factors that are driving costs higher in the healthcare system.

The report examines healthcare spending during 2001, finding that the average increase in health insurance premiums was 13.7%. PricewaterhouseCoopers attributes much of the rise in healthcare spending to the following factors:

Mandates and government regulation15% - $10 billion

Impact of litigation 7% - $5 billion

Fraud and abuse and other cost drivers 5% - $3 billion

"The rising cost of healthcare is the most important...

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Source: Managed Care Weekly Digest (2002-06-24)

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