Admissions/1,000

What Does Admissions/1,000 Mean?

Admissions per 1,000 is a statistic that indicates the number of individuals, out of every 1,000 members of a health insurance plan, who were hospitalized during a specific period.

This metric helps health insurers estimate the funds required to cover hospital expenses over a given timeframe.

Insuranceopedia Explains Admissions/1,000

Hospital admissions are extremely expensive and represent a significant cost for health insurance companies, with many admissions costing tens of thousands of dollars. For this reason, it is essential for insurers to estimate how many of their policyholders are likely to be hospitalized within a specific timeframe. A high number of hospital admissions can pose a serious risk to their profitability. Many of these admissions involve serious diagnoses like cancer or heart attacks, which is one reason some consumers buy critical illness insurance to help cover hospital bills and other costs that regular health plans leave behind. When admission rates run high in a given plan, those costs eventually feed into the premiums policyholders pay, which is why many people look into ways to lower their health insurance rates at renewal.