Bucks Blog: Family Medical Costs Still Rising

The good news is health care costs are going up more slowly. The bad news is that families continue to see larger medical bills.

The typical cost to cover a family of four now exceeds $22,000, including the amount paid in insurance premiums and out-of-pocket costs, according to the latest Milliman Medical Index for 2013. Milliman, an actuarial and benefits consultant, puts the cost at slightly less than the amount a family might pay to send a child to an in-state public college for a year.

This year’s increase over last was only 6.3 percent, according to the analysis from Milliman, having dropped steadily from the 7.8 increase it calculated for the year-over-year increase in 2010. But the total dollar increase is about $1,300, and families are paying several thousand dollars more than they were just a few years ago, increasing more than $5,000 since 2009. “The dollar amount is still significant,” said Chris Girod, an actuarial expert for Milliman.

Milliman calculates that employers pick up the bulk of the costs, paying nearly $13,000 of the overall tab.The employee pays the remaining $9,000, divided between the worker’s share of premiums and that worker’s out-of-pocket costs.

There has been vigorous debate over whether the slowing down in the rate of health care costs is because of the weak economy, efforts to bring costs under control or some other reason. The Milliman report does not predict whether families should expect the good news to continue. “There isn’t one single driver pushing this down right now,” said Mr. Girod.

Because the index reflects the costs for a family insured under an employer, which is representative of most people who have coverage, Milliman is fairly cautious about the impact of the Affordable Care Act on health care costs in the near future. The new marketplaces for health insurance, expected to make their debut in October to offer coverage in 2014, are largely aimed at people who have to buy insurance on their own. While there are provisions in the federal law aimed at reducing overall health care costs, it may take a while to see any proof that these steps are effective, Mr. Girod said. “The jury is out right now, and there are opportunities for improvement,” he said.

Article source: http://bucks.blogs.nytimes.com/2013/05/22/family-medical-costs-still-rising/?partner=rss&emc=rss