MINNEAPOLIS, September 30, 2008 - The trend of Minnesota patients paying more of their health care costs out of pocket continued in 2007, according to an issue brief released by the Minnesota Department of Health (MDH) Tuesday.

In 2007, private plan enrollees covered 15 percent of their total health care costs out of pocket compared to only 10 percent in 2000, according to MDH’s annual look at health care spending, Private Health Insurance Cost Trends in Minnesota, 2007.

That increase meant that in 2007 the average private health plan enrollee paid about $600 out of pocket for health care and their health plan paid about $3,500.

The brief says that employers continued in 2007 to shift costs to patients as a way to contain health care premium increases.

Minnesotans saw the largest premium increase since 2004 with an 8 percent jump to about $3,600 per enrollee, which was higher than the national premium increase of 6 percent, the brief said. 

Premium costs also increased faster than health care costs, which increased nearly 6 percent in 2007.

The report says the largest cost drivers were physician and hospital services, with physician services accounting for about 45 percent of the spending growth and hospitals accounting for about 44 percent of spending growth.

Here is the breakdown of private health plan spending for 2007:
Physician services 33.2
Inpatient hospital 20.3
Outpatient hospital    13.9
Drugs 13.1
Other medical 10.7
Administration 8.5
Other 0.3

Click here for the complete issue brief.