Corrente

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private heath insurance admin costs- calling Hugh or anyone else for that matter...

Valley Girl's picture

I'd like to understand this graph, relative to the value of the dollar. I mean, does that matter?

Graph is from piece posted by Howie Klein, at DWT, here.

Otherwise offered w/o comment.

Comments

Submitted by hipparchia on

but i can do some arithmetic for you...

from your [howie's] graph: in 2008, the administrative cost per person covered by private health insurance was $471.

from table 4 [page 8/12], line item 'Per Enrollee Estimates of Private Health Insurance': the average private health insurance premium was $3988.20

[rounding a bit] for 2008: $471/$3988 => 11.8% of premium dollars went to 'administrative costs'

so, doing that for all the years from 2008 going backward to 1987 [which is as far back as table 4 goes], the administrative costs of private insurance as percent of premiums paid were:

11.8%
12.5
12.8
13.2
13.3
13.7
12.4
11.4
11.4
11.0
10.5
11.0
11.9
11.9
12.5
12.8
11.4
11.6
12.5
12.4
10.6
9.2

one note: i see that table 4 says that for most of this time period, about 190 million people were covered by private insurance. since we can find reliable sources on the web [but i'm too lazy to go looking for them right now] that only about 160-170 million people have been covered by employer-sponsored insurance in recent years, and something like 7-15 million people are covered by individual private insurance, that leaves 20-30 million people or so... not sure if these are medigap, medicare advantage, medicare part d, medicaid, schip enrollees or not, but they might be.

Valley Girl's picture
Submitted by Valley Girl on

So, it just shows that data is not meaningful, without context. And, it's tough to get the whole context. And, the two graphs are not the entirety of the situation, as I'm sure you know. But, this should be a head's up about "how to lie with statistics".

Hipp's numbers