How America’s Health Insurance Plans Spends Revenue (2021)

America’s Health Insurance Plans (AHIP) is a tax-exempt, non-profit 501 (c) 6 – a trade organization – representing health insurance companies that provide coverage through employers, Medicare Advantage, Medicaid managed care, and open market plans that provide individual coverage. A political advocacy group to represent health insurer’s best interests, AHIP has been in the news recently because insurers are balking at consumer demand for more transparency on claim denials and health coverage.

AHIP reported total revenue of $90 million in 2021 (compared to $76 million in 2020), most of which came from member dues and assessments ($60 million) and educational programs ($21 million).

Expenses totaled $86 million in 2021 and can be categorized as follows:

• $37 million (41% of revenue):  Fees for Services (primarily lobbying, consultants and contract services)
• $30 million (33% of revenue):  Compensation
• $ 7 million (8% of revenue):  Office-related Expenses
• $ 5 million (6% of revenue):  Other Expenses (i.e. advocacy, dues and registration, etc)
• $ 4 million (4% of revenue):  Programs
• $ 2 million (2% of revenue):  Travel and Conferences
• $ 1 million (1% of revenue):  Advertising and Promotion

Using the above information every $100 in revenue was spent as follows:

$100:  Revenue

-$ 41:  Fees for Services

-$ 33:  Compensastion

-$  8:  Office-Related Expenses

-$  6:  Other Expenses

-$  4:  Programs

-$  2:  Travel and Conferences

-$  1:  Advertising and Promotion

-$ 95:  Total Expenses

 $  5:  Revenue Remaining:  To General Fund

In summary, AHIP raises revenue primarily through membership fees and assessments (from insurance providers) and then spends $74 out of every $100 on lobbyists, advocacy, contract fees, and compensation for employees promoting the interests of the health insurance company members.  An additional $21 out of every $100 is spent on office-related expenses, program expenses, travel and conferences, and advertising and promotion.  And, since, the health insurance companies obtain most of their revenue from customers paying their health insurance premiums, it is clear that it’s the consumer, the person paying the monthly insurance premiums, that pays for AHIP to promote their best interests, not the interests of the premium paying customer.

To read the IRS Form 990 (2021), click here.