Insurers spent less than 1% of premiums on QI, report says

03/25/2013 | HealthLeaders Media

Health plans spent $2.3 billion, or less than 1% of premiums, on quality improvement initiatives in 2011, with 51% going toward improving health outcomes and 9% spent on preventing readmissions, a Commonwealth Fund study found. The Affordable Care Act requires plans to spend money on quality improvements. Co-author Michael McCue of Virginia Commonwealth University said the majority of premiums are spent on care expenses, which help promote quality.

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