How North Dakota Health Insurance Money is Spent

Understanding how your health insurance dollar is spent

Across the country, health insurance premiums have been increasing at double digit rates annually for a number of years, with no sign of slowing down. The challenge of maintaining affordable health insurance is not at all unique to North Dakota, and is a national concern.

Increases in health insurance premiums across the nation are a product of overall increases in health care utilization, coupled with rising health insurance costs. North Dakota health insurance companies continue to maintain relatively low administrative expense costs, meaning a relatively larger portion of premiums are available to pay benefts.

Utilization

As the average age of the U.S. and North Dakota population gets older, we continue to place an increased demand on the health care system. As a simple illustration, a population of 25-year-olds will require fewer hip and knee replacements, angioplasties and blood-pressure medications than a population of 70-year-olds. As the baby boom generation continues to age, we can expect more and more people to utilize the health care system.

Additionally, highly effective advertising and marketing efforts by health care professionals and drug companies have helped Americans become better educated and more aware of advances in medical technology. The advances are well-publicized and are demanded by more and more consumers.