Milliman: Annual Healthcare Costs Doubled in Under Nine Years
Lorraine Mayne, principal and chief actuary at Milliman, said she was surprised by the increase in healthcare costs now being borne by each year by employees. "Employee out-of-pocket cost sharing and employee payroll deduction increased by 9.2% and 9.3%," she said in a telephone interview from her Salt Lake City office. "Employees will pay $8,008 more for healthcare in 2011 than they did in 2010."
Mayne says the culprit is probably health plans with higher deductibles, higher co-insurance, and higher copayments.
In addition to looking at costs on a nationwide basis, the Milliman Medical Index also looks at the healthcare costs in 14 cities across the country, including Philadelphia, Atlanta and Memphis. Healthcare costs for a family of four ranged from $17,336 in Phoenix to $23,362 in Miami. In six of the 14 cities studied healthcare costs exceeded $20,000 annually for a typical family of four,
Mayne said the geographic cost differences can be explained in terms of utilization patterns, how providers practice in one city versus another, the differences in standard medical procedures from one city to another, and the competition. "Healthcare is a very local industry."
Margaret Dick Tocknell is a reporter/editor with HealthLeaders Media.
- Antibiotic Overuse a 'Huge Threat' to Patient Safety, Says CDC
- 3 Traits Personality Assessments Can't Reveal
- Consumerism Drives Healthcare Branding, Rebranding Efforts
- CHS Hacked, 4.5M Patient Records Compromised
- PA Ranks See 'Phenomenal Growth,' Lack of Diversity
- Business Roundup: M&A Activity Down Slightly in First Half of 2014
- CFO Exchange: Healthcare Leaders Share 5 Innovative Ideas
- CFO Exchange: Smartphones Poised to Disrupt Healthcare, Says Topol
- Large Employers Trimming Healthcare Spending
- 3 Things the Ice Bucket Challenge Can Teach Hospital Marketers