Top Drivers of Healthcare Costs

Blue Cross is working to make healthcare more affordable by tackling the primary drivers of healthcare costs—and health insurance premiums.

  • Hospital reimbursements continue to outpace inflation and account for more than one-third of our members’ claims. In an effort to moderate long-term healthcare costs, Blue Cross is collaborating with local network hospitals to create and implement a Hospital Quality Program. This program will help improve the quality, safety, and efficiency of healthcare by using standard, evidence-based measures to evaluate hospital performance—and by providing financial incentives to hospitals that successfully meet those measures.
  • For physicians, we also changed our compensation model to focus on quality of care and patient outcomes instead of treatment volume.
  • In an effort to combat prescription drug costs, Blue Cross offers a drug formulary that encourages the use of high-quality, but lower cost, generic or over-the-counter drugs. This is a safe and effective way to help lower the cost of care without reducing quality.

Major Healthcare Cost Drivers

Key healthcare services cost Blue Cross and our members more than $1.3 billion in 2011.

Here is how those costs break down.

Pie chart of major healthcare cost drivers