The Problem With Averages

Health care is designed for the ‘average’. Whether we’re talking about underwriting of health care costs, the design of delivery systems, or the approval of medications—the statistics tell the story.

For health care underwriting, 10% of consumers account for 70% of health care expenditures (see How Do Individuals With Behavioral Health Conditions Contribute To Physical And Total Healthcare Spending? and Concentration Of Healthcare Expenditures And Selected Characteristics Of Persons With High Expenses). Experience with health plans depends on your health status—84% of people who describe their physical health status as at least “good” rate their health insurance . . .