BCBSNC claims data for 2014 and the first half of this year revealed some key trends that are driving up health care costs:
More chronic illness and a higher-than-expected demand for expensive health care services among ACA customers. Health care spending among ACA customers increased each month, up 30% in January through June of this year compared to the first six months of 2014.
A 27% increase in the number of emergency department visits in January through June of this year compared to the same period of 2014. Many of these were for conditions that could have been better treated in a different, less expensive care setting, like urgent care.
Soaring prescription drug costs among our ACA customers. Drug spending
increased 33% in the first half of this year compared to January through June of 2014. This makes prescription drugs the fastest-growing component of medical spending in our ACA business.
ACA customers dropping coverage or stopping premium payments. Most of those who dropped their coverage first used expensive medical services. The others who cancelled their plans were among the healthiest customers, those who had not filed any claims. Without the right balance of healthy and sick customers, we would not be able to continue covering the cost of care at current premium rates.