"Among lost jobs, lost revenue, strained government budgets, consumer insecurity, and an uncertain future, the macroeconomic climate is affecting healthcare costs," said study co-author Lorraine Mayne, Milliman principal and consulting actuary. "Throw in healthcare reform and you have a cost trend environment unlike any we've seen in recent memory."
"The macroeconomic cost pressures are being borne both by employees and employers," said MMI co-author Ron Cornwell, Milliman principal and consulting actuary. "Employers still pay the majority -- 59% this year. Employer subsidies have increased about $500 while employees have seen increases of about $650, including $500 for employee contributions and $150 for employee out-of-pocket costs."
Medical costs for a family are determined by the number, type, and cost of healthcare services that they utilize and the amounts that the employee's health plan pays medical providers for these services. Utilization of medical services for a particular family varies significantly based on the family's ages, geographic area, health status, and other factors. Among the 14 metropolitan areas Milliman annually studies, healthcare costs varied by more than 30%, with the most-expensive city, Miami, becoming the first to pass the $20,000 per-family mark and the least-expensive city, Phoenix, still below $15,000.
