According to a recent study by Milliman, Inc.,
healthcare costs are on the rise. Milliman is one of the most prominent consulting and actuarial firms who’ve been running their study for many years. This year’s study found that the “typical American family of four” is spending an average total of $18,074 per year on healthcare. This amount is $1,303 more than what was spent last year and represents the highest total-dollar increase in the history of Milliman’s study.
Milliman observes yearly changes in
healthcare insurance when a family is covered by employer-sponsored preferred provider organization (PPO). The actual dollar amount in the study is not simply what the family pays, but also the shared costs of the employer and employees. In addition, the study charts the difference in cost of fourteen separate metropolitan areas. Despite the forthcoming healthcare reform, it appears that group insurance costs are continuing to rise at a rather steady pace.
Waiting on ReformIn fact, the promise of healthcare reform seems to be at the heart of the issue. Many employers are stalling to make changes as the public continues to see what exactly the forthcoming reform entails and whether or not it’ll guarantee
secure insurance. Milliman best describes the planning phases of group costs as “an environment of great uncertainty,” where details were scarce as reform debate continued. Milliman describes the
rising healthcare costs as a “historical trend.” The general economy and
rate of unemployment also seem to be part of the equation. As jobs are lost, the stability of the health market suffers as well.
The costs for a family are derived by the amount, type, and cost of healthcare services that the family uses. This all varies significantly depending on the family’s location, ages, and current medical status. Milliman found the different between the last-expensive and most-expensive cities in the study to be 37%. New York, Chicago, and Miami exceed an average of $20,000 per-family while Phoenix is the least expensive with $16,071 per-family. In regards to
healthcare costs, 2010 seems to be a year of uncertainty. While costs are indeed on the rise, it’s up in the air as to whether or not the forthcoming healthcare reform will have a significant impact to bring prices to a halt.