Milliman Research Report
May 2008
Milliman’s fourth annual study of average medical spending for a typical American family of four looks at key components of actual medical spending and tracks the changes over time.
As was the case last year, healthcare costs have continued to shift from employers to employees.
…of the $15,609 total medical cost for a family of four under a PPO, the employer pays about $9,442 (60%), and the employee pays about $6,167 (40%). Just over half of the employee’s share, or $3,492, is paid through payroll deductions, while $2,675 is paid in cost sharing at time of service.
Although the cost for a typical family of four is $15,609, any particular family could have significantly different costs.
http://www.milliman.com/expertise/healthcare/products-tools/mmi/pdfs/milliman-medical-index-2008.pdf
Comment:
By Don McCanne, MD
Since the employer’s contribution to the premium is actually paid by the employee in foregone wage increases, the entire $15,609 in typical family medical costs comes out of the employee’s total compensation package. Just think of how much more those who actually need health care would be paying. The increasing shift of costs from the employer to the employee, although only nominal, does make more explicit the employee’s role in paying for health care.
No doubt the advocates of consumer-directed health care applaud this increased transparency in who is actually paying our very high health care costs. But perhaps we should applaud as well. Maybe then there would be a greater demand to adopt a much more equitable system of financing health care in America.