The median price to buy a home in 1970 was about $25,000. What do you get for 25k today? According to a report just released by the Milliman Medical Index, that’s what the average family of four now pays for one year of health care!
The $25,826 in health-care costs for a typical family of four covered by a employer-sponsored “preferred provider plan” is $1,155 higher than last year, and triple what it cost to provide health care for the same family in 2001.
It probably won’t come as a huge surprise that one of the biggest reasons behind the skyrocketing costs is prescription drug prices. Money Magazine wrote, “Prescription drugs are a major culprit for the climbing cost of health care in the U.S., with spending on prescriptions totaling nearly 17% of total health care spending in the country. According to Milliman research, a typical family’s prescription drug costs have increased four-fold since 2001.”
NBC News looked to put a little perspective on that $25,000 price tag by pointing out another reason why the cost of coverage is climbing.
The index notes that “many people wonder how costs can be so high, especially if they only visit the doctor for preventative visits and occasional routine care.” But the index added that “the disconnect” may be partly due to the fact that about 80 percent of health-care costs come from just 20 percent of the population, whose use of medical services drives up insurance plan premiums for the others.
Yet another reason that consumers are now digging deeper…..15 years ago, employees paid 61 percent of costs while employees paid 39 percent. This year, the same split is 57 percent and 43 percent.
Share your thoughts on these new numbers and what it means for families across our state. What can we do to help rein in costs? Do you believe focusing on wellness can make a difference? Finding answers to these types of health questions will help us better understand what needs to be done in order for us to one day reach our goal of making Arizona the Healthiest State in the Nation!