With the inauguration of President-elect Donald Trump just a few days away, Congress is actively working to repeal and replace the Affordable Care Act (ACA) with the goal to lower the current health care costs. However, this is a difficult task with the harsh reality that someone has to pay for the sick people that are expensive to cover.
The fact of the matter is that only a small percentage of people make up the majority of health care spending. In a recent article released by The Wall Street Journal, Anna Wilde Mathews writes:
“A small number of high-cost patients have long generated a large proportion of health spending. The 10% of people with the highest costs accounted for about two-thirds of health spending, according to the Kaiser Family Foundation, a health-care research nonprofit, when it quantified the phenomenon in 2013.”
To cover the costs of these few individuals, healthy people are required to pay higher premiums that finance the costs of the sick.
This not only applies to the nation, but also within individual companies. Often times, only a small percentage of employees make up the majority of the claims within a business. Resulting in the employer to cover the high costs of only a select few employees. With that being said, it is extremely important to manage these claims by allowing the company to audit the large claims coming through for billing accuracy.
Read Health Care’s Bipartisan Problem: The Sick Are Expensive and Someone Has to Pay, from The Wall Street Journal for more information.