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Costs for Family Health Care Have Doubled Since 2002

Health care costs for an average insured family of four covered by a PPO have reached $19,393 this year, according to the latest annual Milliman Medical Index. That’s more than double the 2002 cost of $9,235, and an increase of 7.3% from 2010. The annual growth rate in costs slowed slightly in the past year, but still exceeds most other economic sectors. The employer paid $11,385 of the tab, while the employee was responsible for the remaining $4,728 balance, or nearly 40% of costs, either in premiums or out-0f-pocket costs for deductibles, co-payments, co-insurance, or non-covered services.

Spending was distributed among these components:

  • Physician care: 33%
  • Inpatient care: 31%
  • Outpatient care: 17%
  • Pharmacy: 15%
  • Other: 4%

Milliman studies health costs to assess changes in health plan benefit levels, and its related products are used by many insurers to estimate claim costs and utilization rates when designing and pricing health plans.

Source: Mayne L , Girod C, and Scott Weltz. 2011 Milliman Medical Index. Seattle: Millliman, May 2011.  http://publications.milliman.com/periodicals/mmi/pdfs/milliman-medical-index-2011.pdf

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