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Milliman Medical Index: Average Family Spends $25,000 a Year on Health Care

The new 2016 Milliman Medical Index reports the lowest annual increase rate in health care costs since it started tracking them 15 years ago — it’s now down to 4.7%. That said, health care expenses for a typical American family of four now top $25,000 a year, triple the amount from 15 years earlier in 2001. The fastest growing health care expenditure over the past year was for prescription drugs that account for 17% of all family health care costs.

The $25,826 average annual family medical costs are allocated into these three categories:

  1. Employer subsidy to health plan: $14,793 [57%]
  2. Employee contribution to health plan: $6,717 [26%]
  3. Employee out-of-pocket: $4,316 [17%]

Source: Girod C and others. 2016 Milliman medical index. Milliman, 2016. http://www.milliman.com/uploadedFiles/insight/Periodicals/mmi/2016-milliman-medical-index.pdf

Posted by AHA Resource Center (312) 422-2050, rc@aha.org

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