A Small Number of Workers Account for Most Health Costs — Here’s What to Know

The use of health care services — and the spending associated with those services — is far from evenly distributed across the population. It has long been known that a small portion of the population accounts for a disproportionately large share of health care spending, with 20 percent of the population typically accounting for 80 percent of total health care spending. Yet, employers often offer health plans that look and feel largely the same to enrollees regardless of the extent to which they use health care services, despite differences in health status, health conditions, and underlying health care needs. This Fast Fact takes a closer look at how a small share of workers drives the majority of health care spending in employment-based health plans.