Rising health-care costs are enough to make you sick

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7. 2014 Milliman Medical Index ...

http://pnhp.org/blog/2014/05/23/2014-milliman-medical-index/

"The Milliman Medical Index (MMI) is an important number because it represents the actual cost of health care, excluding health plan administrative costs and profits, for a typical family of four insured by an employer-sponsored PPO (preferred provider organization). Keep in mind that the workforce and their young families are a relatively healthy sector of our society, yet the health care costs for that family in 2014 are now $23,215.

We are reassured that the rate of increase is the lowest in years – only 5.4%. But that is not so reassuring when you consider that the rate is still well above the rate of growth in the CPI (consumer price index). In fact, over the last ten years, the MMI has increased an average 7.6% whereas the increase in the CPI has averaged only 2.3%.

Although the rate of increase in the MMI has decreased to 5.4%, that is still a one year increase in health spending of $1,185. That is quite a hit for a family that has seen stagnant wages for the last couple of decades.

Another important observation is that increasing proportions of the cost increases have nominally been shifted to the family – through higher payroll deductions and greater out-of-pocket costs. In actuality, most economists agree that the employer’s share of the costs is actually paid by the employee in the form of forgone wage increases..."