Milliman Medical Index Shows Rising Cost for Family Health Care Coverage
June 5, 2013
The 2013 Milliman Medical Index (PDF) shows the cost of health care coverage for a typical family of four with an employer-sponsored health plan reaching $22,030, a 6.3 percent increase. Of that total, employers would pay about $12,886 in subsidies, while the employee would pay the remaining $9,144, which is a combination of $5,544 in payroll deductions and $3,600 in employee out-of-pocket costs.
In comparison, the total cost is almost equivalent to tuition at an in-state public university, with employee contributions exceeding the average annual cost of groceries for a family of four and out-of-pocket costs higher than what the average U.S. household spends on gasoline in a year.
The 2012 results represent an almost 33 percent increase since 2009. Despite the increase, the Milliman report found that health care costs are growing more slowly than in the past, due to a sluggish economy, increased efficiencies through provider integration and a shortage of new "blockbuster" drugs coming on the market.
Among the components of the index, there were the following increases: inpatient facility care rose 5.0 percent, hospital outpatient trend increased 9.2 percent, physician and other professional services rose 5.2 percent, and pharmacy costs increased 7.9 percent.
Milliman is a premier global consulting and actuarial firm.