Sunday, November 25, 2018

Healthcare Costs Unsustainable


$28k: The average price a family of 4 will spend on healthcare in 2018, by Alia Paavola, 6/4/18.

A typical American family of four insured by the most common employer-sponsored health plan can expect to spend more than $28,000 on healthcare in 2018, according to the annual Milliman Medical Index report.  

Here are six key insights from 2018's medical index:
1. A family of four will pay an average of $28,166 in 2018, an increase of $1,222 from 2017. The estimate includes the average cost of health insurance paid by employers and employees, as well as deductibles and out-of-pocket expenses.
2. For a family of four, 31 percent of healthcare expenditures in 2018 will be inpatient services; 29 percent will be physician services; 19 percent will be outpatient services; 17 percent will be pharmacy services; and 4 percent of expenditures will be "other" services, such as home healthcare or ambulance services.
3. Over the last 10 years, the amount a family of four spends on healthcare has been increasing by an average of $100 per month.
4. While the dollar amount families of four spend on healthcare continues to increase, the pace at which it grows is slowing. The report cited several reasons for this trend, including provider engagement in reducing healthcare spending; more efficient plan designs that are encouraging consumers to find cost-effective care; and public programs such as value-based care initiatives.
5. The total cost of healthcare for a typical family of four is shared by employers and employees. In 2018, about $15,788 of healthcare costs for a family of four will be paid by the employer; $7,674 will be via employee payroll deduction; and $4,704 will be out-of-pocket expenses. Based on these dollar amounts, employees will pay about 44 percent of their healthcare costs. In 2008, employees paid under 40 percent of their healthcare costs.
6. While both employer and employee costs have increased from 2017 to 2018, the employee saw a larger increase in costs. Employee healthcare spending increased 5.9 percent, compared to an employer increase of  3.5 percent. Read the full research report here.


Medical care costs increased 11.9% in 2007. Since then the annual increases in medical cost has declined. In 2008 it was 9.9%, in 2009 it was 9.2%, in 2010 it was 9%, in 2011 it was 9%, in 2012 it was 8.5%, in 2013 it was 7.5%, in 2014 it was 6.5%, in 2015 it was 6.8%, in 2016 it was 6.2%, in 2017 it was 5.5% and in 2018 is will be 6%. The projection for 2019 is 6%.

Medical inflation has been triple the rate of inflation and the cost build-up has increased the US percentage of GDP to 17.5%  


Norb Leahy, Dunwoody GA Tea Party Leader

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