This issue concerns everybody providers, patients, and payers. But recognizing the problem is the easy part. Figuring out what to do about it and taking action presents the challenge. Of each premium dollar received, 90.1 cents was paid for health care services to hospitals, physicians, chiropractors, and for pharmaceuticals in 2000. As illustrated in the accompanying chart, people are simply using health care services more, resulting in more claims.
Increased utilization means higher costs.
For the past 60 plus years, we have been investing our reserves and making decisions that allow us to remain financially viable and administratively efficient. We ve held the line on provider reimbursements, made staff cuts, and designed benefit plans with cost sharing features and preventive benefits. Because higher premiums follow increasing demand for services, we continue to address the issue of utilization so that our members make good choices when seeking care. When it comes to reducing health care costs, the primary responsibility of consumers is to take charge of their health and take care of themselves. They need to communicate with their providers, use appropriate preventive services, and get regular checkups as recommended for their age and physical condition.