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Spending in the
Private Sector

Employee health insurance, workers’ compensation
and out-of-pocket costs are more than half of statewide
health care spending

Employers and individuals spent more than $39 billion for health care in 1998, or almost 58 percent of all health care spending in Texas (Table 3). This was money spent directly in the private sector for health insurance ($24.7 billion), workers’ compensation ($700 million) and out-of-pocket costs ($14 billion) not covered by insurance.

Most of that spending, $24.7 billion, was for private health insurance for employees; primarily by private businesses and their employees. State agencies and school districts, and their employees, spent about $1.8 billion for employee health insurance (Table 1).

The first summary is the total spending for private health insurance by both private and public employer and their employees. That is followed by summaries that detail state and school district spending for private health insurance.

The workers’ compensation summary includes spending by businesses and state agencies. Separate summaries break out spending by state agencies, local governments and others.