Factors That Affect Auto Insurance: Hospital And Medical Costs

When you think about hospital costs, you probably think of health insurance. Although it may not be as apparent, medical and hospital costs affect auto and homeowners insurance too. Injuries to you and others are covered by Medical Payments (Med Pay), Bodily Injury Liability and Uninsured/Underinsured Motorists coverages on your auto policy. Your homeowners insurance policy most likely includes Medical Payments to Others coverage, protecting those who are injured on your premises.

Five-year comparison of hospital costs

Provided below are the 1998 and 2002 adjusted per diem hospital costs in major Ohio cities. Average daily cost increases show large variances, with most cities experiencing increases from just under 2% to over 32%. In the Steubenville/Wierton area, per diem hospital costs have actually declined. Between 1998–2002, the state average adjusted per diem cost of hospital care rose 22.1% in metropolitan areas and 33.2% in nonmetropolitan areas. The statewide average showed a 13% increase during this most recent five-year period.

35 million Americans are admitted to hospitals annually, receiving fewer days of treatment, but usually at higher charges. Typical hospital stays for heart attack victims averaged 5.5 days in 2000, down from 7.4 in 1993. The cost of associated treatment rose from an average of $20,600 to $28,600 between 1993–2000. The American Hospital Association reports the average hospital stay also declined from 7 days in 1993 to 5.8 days in 2000. The average stay in Ohio was 5.4 days in 2000. (Excerpts from Cleveland Plain Dealer, 10/2/02)