Cost of health care in area on rise - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
October 12, 2016 Newswires
Share
Share
Post
Email

Cost of health care in area on rise

Free Press (Mankato, MN)

Oct. 13--MANKATO -- Medical care costs for insured patients in Minnesota rose by more than 5 percent last year, according to new data analysis.

The 5.6 increase in medical costs statewide is the biggest since the MN Community Measurement nonprofit started releasing cost of care data for medical groups two years ago.

The nonprofit measures costs by tallying insurance claims made by the more than 1.5 million patients enrolled in the four health plans available in Minnesota last year.

On top of being a larger increase than the 3.2 percent one highlighted in last year's report, the uptick also far outpaces income increases for Minnesotans over the same time period.

Jim Chase, president of MN Community Measurement, said that's a concern for families trying to keep up with medical costs.

"That's worrisome when you think of how much pressure there is on families," he said.

Higher costs in Greater Minnesota, where there are fewer options available to patients, are also a problem, he said.

The cost of care for insured patients at the medical groups included in the report ranged from $365 to $914 per month. Area medical facilities fell in the middle of the two marks. Mayo Clinic Health System in Mankato came in at $534 per month, a 2.9 percent increase from the previous year. Mayo facilities in St. James, Waseca and New Prague all came in lower per month -- New Prague, at $461 per patient, being the lowest.

In a statement, Mayo Clinic Health System spokesman Micah Dorfner said measuring costs for care at destination centers such as Mayo Clinic can be complicated. While the clinic supports efforts to transparently measure costs for care, distinctions should be made in the data to reflect the difference between complex care and community care. As a health system, Dorfner said steps are being taken to mitigate costs.

"Mayo Clinic Health System continues to take significant steps to manage cost of care, including improving access, reducing costs and increasing transparency," he said.

Mankato Clinic saw a larger increase in cost of care than the Mankato Mayo over the past year -- 11.7 percent -- but still had a lower overall cost at $490.

The increase from year to year could be explained by a variety of factors, said Randy Farrow, CEO of Mankato Clinic. Pharmacy costs, an unusual number of major medical procedures in a given year, or more visits associated with preventive care could all lead to higher costs for care, he said.

Of the factors the clinic can control, Farrow said it's typical to have about a 2 to 3 percent increase in costs per year, mostly to make up for inflation and wage increases.

Pharmacy costs were one of the factors Farrow said the clinics don't control -- apart from their willingness to prescribe generic drugs -- but they could still be attributed to the clinic in insurance claims. At a 9.3 percent increase, take-home pharmacy costs were the services with the largest increase from last year.

In an unintentional way, preventive care could also be a driver of increased costs. Farrow said if clinics are encouraging patients to be proactive with their health, it could lead to more visits to the clinic in a given year. More visits equal higher costs for care, although the short-term expense should be eclipsed by cost savings related to maintaining a healthier lifestyle in the following years.

Whatever the cause of the increases, Farrow said the transparent cost for care measures are good from both a patient and medical group perspective.

"It's good to start having people see this data and be more transparent," he said. "I think it's going to make us all better and more competitive because we know price is an issue."

The issue isn't expected to go away next year either, Chase said. Premium hikes for individual insurance plans announced recently could foretell a similar increase in cost of care next year.

"I'm guessing we'll see continued acceleration of health care costs, and that's worrisome," he said.

Follow Brian Arola @BrianArolaMFP.

___

(c)2016 The Free Press (Mankato, Minn.)

Visit The Free Press (Mankato, Minn.) at www.mankatofreepress.com

Distributed by Tribune Content Agency, LLC.

Older

Wednesday storm center: Have a question about Hurricane Matthew recovery? We’re here to help

Newer

Federal emergency agencies assess Waseca flood damage

Advisor News

  • Dutch gambling tax hike falls short as prediction markets eye World Cup
  • Caregiving: A challenge that costs employers billions
  • Could your practice benefit from an advisory board?
  • SEC nears settlement with accused scammer Tai Lopez
  • The 3 things that shrink your Social Security income
More Advisor News

Annuity News

  • AI’s dual reality: Efficiency for insurers, disruption for agents
  • Globe Life Inc. (NYSE: GL) Highlighted for Surprising Price Action
  • Trademark Application for “EMPOWER YOUR MONEY” Filed by Empower Annuity Insurance Company of America: Empower Annuity Insurance Company of America
  • Built-in guaranteed annuities: What advisors should know
  • Malibu Life Holdings Completes Acquisition of TruSpire, Establishing Malibu USA and Accelerating Entry into the U.S. Retail Annuity Market
More Annuity News

Health/Employee Benefits News

  • 2.6 million Americans lost health insurance in 2025 after ACA subsidies expired, leading to real health consequences
  • DURBIN VISITS CHESTNUT HEALTH DENTAL CLINIC IN BLOOMINGTON, TALKS IMPROVING ACCESS TO DENTAL CARE FOR ILLINOISANS AMID CRITICAL SHORTAGES
  • State Health Plan brings back Blue Cross NC, approves Novant and UNC Health deals
  • Could health plans be the next crucial benefit for independent agents?
  • SWBC’s Joan Cleveland Reappointed to Texas Association of Life & Health Insurers (TALHI) Board of Directors
More Health/Employee Benefits News

Life Insurance News

  • SWBC’s Joan Cleveland Reappointed to Texas Association of Life & Health Insurers (TALHI) Board of Directors
  • AM Best Introduces US Life Version of Best’s Capital Adequacy Ratio Model Product
  • Change the lens you use to evaluate premium-financed IUL
  • AI’s dual reality: Efficiency for insurers, disruption for agents
  • Insurance industry employment shows disturbing declines
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet