The average medical expenses for a family of four increased by 9.6% from $12,214 in 2005 to $13,382 in 2006, according to BenefitNews.com.
Companies are bearing higher inflation rates than their employees, even as they increase amounts employees pay in premium contributions, deductibles, copays and coinsurance.
The inflation for the employer’s share was 11.3% in 2005 and 2006, while employee’s share saw a 6.8% increase this year, compared to 5.8% last year. The average family of four paid $2,210 out-of-pocket for medical care this year with coverage from a typical PPO.
Citing Milliman consultants, Benefit News says the average annual rate of increase between 2002 and 2006 was 9.7%, and inflation rates will stay in the 9% to 10% range for the next several years.
The total costs include the cost of physician visits (36% of total costs), inpatient hospital care (30%), outpatient hospital care (16%) and pharmaceuticals (14%). The steepest inflation was found in outpatient and inpatient care this year. Some good news: The upward trend in pharmacy costs slowed considerably.