Healthcare costs for a family of four surpasses $20,000

Healthcare costs for a family of four are expected to surpass $20,000 for the first time, according to a new report by Milliman.

This annual report calculates the Milliman Medical Index, which is the total annual cost of healthcare for a family of four.

Key findings from the report:

  • The 2012 Milliman Medical Index is $20,728, which is an increase of $1,335, or 6.9% from 2011.
  • The 6.9% increase is the lowest in the history of the Milliman Medical Index; however, the actual dollar amount is the greatest.
  • This year, employer’s portion of the cost rose 6.7%, slightly less than the overall trend of 6.9%.
  • Employee’s portion of the cost rose to 7.2%, which includes an 8.2% higher payroll deduction and a 5.8% increase in out of pocket costs.
  • Of the cities examined in the study, Miami’s costs were the highest at $24,965, and Phoenix’s were the lowest at $18,365.

(Source: Milliman,, May 2012; Advisory Board Daily Briefing,,  May 16, 2012)