The Rising Cost of Health Care


Rising Cost of health Insurance and Care

 

The Milliman Medical Index compiled an annual report that projects health care costs to be an average of $20,728 for a family of four covered by group health insurance under an employer in 2012. Milliman is a group that meets with companies that provide medical insurance to their workers. Employers are expected to pay for $12,144, with the other $8,584 left to the employees.

According to the report, premium costs for a family of four on a PPO (preferred provider organization) plan will be $5,114, with out-of-pocket expenses reaching $3,470.

The average number of $20,728 is record breaking. Broken down as a monthly payment ($1,727), the cost of health care will exceed the average monthly mortgage payment ($1,670).

The average has increased by $1,335, which is 6.9% more than last year. Though the increase is relatively low from previous years, it does not mean the increases will stop occurring and devastating the health care market. The cost of medical care climbed to $2.6 trillion in 2011, as stated by the US government, which is still staggering.

Milliman states that the amount paid to physicians will increase to $6,647, and hospital stays will be $6,531. Due to the increase, these will become the two most significant pieces of a family’s medical care costs.

As with most health-related costs, the figure will vary based on where you are located. The report surveyed 14 major metropolitan areas, with Miami estimated to be the most expensive, at $24,965, and Phoenix the least expensive, at $18,365.