How Revenue is Spent at America’s Health Insurance Plans (AHIP) 2023

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 is 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 $89 million in 2023 (compared to $79 million in 2022, $90 million in 2021, and $76 million in 2020), most of which came primarily from member dues and assessments ($52 million) and educational/conference  programs ($36 million).

Expenses totaled $90 million in 2023 and can be categorized as follows:

• $33 million (37% of revenue):  Compensation
• $28 million (31% of revenue):  Fees for Services (primarily lobbying, consultants and contract services)
• $ 8 million (9% of revenue):  Office-related Expenses
• $ 8   million (9% of revenue):  Travel and Conferences
• $ 6  million (7% of revenue):  Other Expenses (i.e. advocacy, dues and registration, etc)
• $ 6  million (7% of revenue):  Programs
• $ 1 million (1% of revenue):  Advertising and Promotion

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

$100:  Revenue

-$ 31:  Fees for Services

-$ 37:  Compensation

-$  9:  Office-Related Expenses

-$  7:  Other Expenses

-$  7:  Programs

-$  9:  Travel and Conferences

-$  1:  Advertising and Promotion

-$101:  Total Expenses

-$  1:  Excess Expenses

In summary, AHIP raises revenue primarily through membership fees and assessments (from insurance providers who receive revenue from people paying insurance premiums) and then spends $75 out of every $100 on lobbyists, advocacy, contract fees, and compensation for employees promoting the interests of the health insurance company members.  An additional $26 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 the best interests of the insurance companies, not the interests of the premium paying customer.

At year-ed 2023l AHIP had $25 million in net assets.

To read the IRS Form 990 (2023), click here.