Physician cost experience under private health insurance programs

Little information is available on private payer claims cost experience for specific categories of health care. A study was conducted in which physician-claims cost experience and trends among 15 Blue Cross and Blue Shield Plans were compared. Between 1986 and 1988, physician claims cost per covered person increased at an average annual rate of 17 percent, approximately 6 percentage points higher than for Medicare. Annual charges were highest for laboratory (24 percent), radiology (19 percent), and medical care (18 percent) services. Utilization trends were also examined in the study. The number of radiology imaging procedures performed increased 48 percent between 1986 and 1988, and the number of hospital visits declined by 6 percent.