2009 Milliman Medical Index
Unprecedented economic uncertainty has accelerated cost increases in some ways and at the same time reduced certain categories of utilization.
In 2015, the cost of healthcare for a typical American family of four covered by an average employer-sponsored preferred provider organization (PPO) plan is $24,671 (see Figure 1) according to the Milliman Medical Index (MMI).1 The amount will almost certainly surpass $25,000 in 2016.
Looking forward, when and how future annual rates of increase will continue to change is unclear and may depend on a number of factors. One factor is the Patient Protection and Affordable Care Act (ACA) as it has both direct and indirect influences on the costs for our family of four. This year’s MMI takes a deeper dive into how some of these factors may drive future healthcare trends.
1 The Milliman Medical Index is an actuarial analysis of the projected total cost of healthcare for a hypothetical family of four covered by an employer-sponsored preferred provider organization (PPO) plan. Unlike many other healthcare cost reports, the MMI measures the total cost of healthcare benefits, not just the employer’s share of the costs, and not just premiums. The MMI only includes healthcare costs. It does not include health plan administrative expenses or profit loads.