Cost of a fully loaded 2012 Ford Focus SEL midsize sedan vs. the average cost of care for a typical American? Sadly, the 2012 Ford Focus SEL model with a MSRP of $20,105 comes in $623 cheaper than cost average cost of care for a family in 2012 at $20,728, up 6.9% from 2011 according to a recent report. This week, Milliman, Inc., a premier global consulting and actuarial firm, released the results of its 2012 Milliman Medical Index (MMI), which measures the average healthcare costs for a typical American family of four receiving healthcare through an employer-sponsored preferred provider organization (PPO) plan.
It is important to note that the average rate of increase dipped below 7% for the first time since the firm began analyzing these costs; however, the total dollar increase is at a record high. “This helps illustrate the challenge of controlling healthcare costs. When the total cost is already so high, even a slower rate of growth has a serious impact on family budgets,” said Lorraine Mayne, principal and consulting actuary with the Salt Lake City office of Milliman.
Figure 1 from the report highlights the rising increase in the average cost of healthcare for a family of four since 2008.
The annual Milliman Medical Index report (MMI) measures the total cost of healthcare for a typical family of four covered by a preferred provider organization (PPO) plan. The 2012 MMI cost is $20,728, an increase of $1,335 (6.9%) over 2011.
The MMI’s release date falls during an uncertain time for American healthcare, with the nation awaiting the outcome of the U.S. Supreme Court’s decision on the future of the Patient Protection and Affordable Care Act (PPACA). To date, PPACA has had only a limited effect on healthcare costs for families covered by an employer-sponsored PPO plan; longer term, the implications may be more pronounced, and will depend on a number of dynamic and interrelated factors.
Another key highlight of the report as shown below in figure 6 includes analysis of healthcare costs in 14 cities, thereby showcasing the role that geography plays in healthcare costs. This year, the average cost of care for the typical family in all, but three of these cities exceeds $20,000. Of the 14 cities analyzed, Miami is the most expensive, at $24,965, while Phoenix is the least expensive at $18,365.
Highest Total Healthcare Costs
For a family of four policy, according to Milliman survey:
Miami ……………. $24,965
New York City …. $24,545
Chicago ……………$23,551
Boston ……………. $22,419
Philadelphia …… $22,054
The report also examines how employers and employees share the cost of healthcare. This year employers will, on average, contribute $12,144 of the $20,728 total while employees—through payroll deductions and out-of-pocket expenditures—will pay the remaining $8,584.
To view the complete MMI, Download the report here.