Minnesota Health Care Costs

• Minnesota health plans paid $12 billion for medical care in 2005, an 10 percent increase from 2004 figures.

• Minnesota HMOs and managed health plans have among the nation's lowest administrative costs. Since 1993, administrative costs have held at about 10 percent of premium revenue.

• An estimated 15 percent of Minnesota health plans administrative costs are due to premium taxes and assessments, while 13 percent of administrative spending is spent helping Minnesotans manage their diseases and improve their health.

• In 2004, Minnesotans spent $27.5 billion on health care.
  • 22 percent was spent on physician services
  • 29 percent was spent on hospital care
  • 16 percent on long term care, including home care
  • 13 percent on prescription drugs
  • 3 percent on dental care
  • 3 percent on other professional services
  • 15 percent on "other" services including emergency room, mental health and chemical dependency services

(Source: Minnesota Department of Health)

Minnesota Health Care Access