Jul 07, 2021
Healthcare costs are expected to grow 8.4% for the average American family from 2020 to 2021, according to the 2021 Milliman Medical Index. From 2019 to 2021, employers will see an 11.6% jump in their portion of employee benefits costs. Employees will see a cumulative 4% increase in their total average costs.
For the first time in the history of the MMI, healthcare costs fell in 2020 from the year before. But, in 2021, costs are expected to grow again thanks to a rebound in healthcare utilization, higher than historical healthcare cost increases, and GDP growth.
In 2021, the cost of healthcare for a hypothetical American family of four with an average PPO is $28,256. For individual coverage, PPO plan costs are projected to be $6,516 by year-end 2021, up from $6,052 in 2020.
The expected growth rate for expenses in 2021:
- 10.2% Inpatient facility care
- 8.3% Professional services -- professional fees including those from physicians and other healthcare providers
- 8.1% Other -- includes home healthcare, ambulance, and durable medical equipment
- 8% Outpatient facility care
- 4.3% Pharmacy
Expected spending for the average person in 2021:
- 29% Outpatient hospital
- 19% Inpatient hospital
- 28% Professional services – professional fees including those from physicians and other healthcare providers
- 22% Pharmacy
- 2% Other -- includes home healthcare, ambulance, durable medical equipment
