Healthcare Costs for American Families in 2012 Exceed $20,000 For The First Time

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May 21st, 2012

Every year the Milliman Medical Index (MMI) measures the total cost of healthcare for a typical family of four covered by a preferred provider organization (PPO) plan. For 2012 the MMI cost has reached $20,728, an increase of $1,335 or 6.9% over 2011. Although the rate of increase is not as high as in the past, the total dollar increase is still a record with the average cost of healthcare for a family of four surpassing $20,000.

Milliman Medical Index


Specific findings from the Milliman report include:

  • Between 2011 and 2012, the MMI increased $1,335, just surpassing the record $1,319 increase set between 2010 and 2011.
  • But there is a silver lining: The 2012 increase in the MMI cost moderated to 6.9%, marking the second year in a row the percentage increase has reached a new low since the inception of the MMI.
  • This year the 6.7% increase in the employer’s portion of costs was slightly less than the overall trend of 6.9%. The 7.2% growth in the employee’s share of costs was slightly more than the overall trend of 6.9%. This latter number includes an 8.2% cost increase in payroll deductions and a 5.8% increase in out-of-pocket costs.
  • Of the cities profiled by the MMI, the most expensive was Miami, at $24,965, and the least expensive was Phoenix, at $18,365. Phoenix is one of three of the 14 cities studied by the MMI whose cost for our family of four remains below $20,000.

You can download the complete report here.