Employees’ Share of Health Costs at All-Time High

May 12, 2011 (PLANSPONSOR.com) – The annual Milliman Medical Index found total health care cost for a family of four covered by a preferred provider organization plan in 2011 is $19,393 -  an increase of $1,319 or 7.3% over 2010.

According to the MMI, total employees’ share of the total cost is at an all-time high, having increased from 36.8% in the first year of the Index (2005) to 39.7% in 2011. Of the total medical costs, the employer pays about $11,385 in employer subsidy, while the employee pays $4,728 in employee contributions and $3,280 in out-of-pocket costs.  

In 2011, employees shared more of the total MMI percentage cost increase than employers. The employers share increased by $641, while the employee’s share increased by $678, which includes $403 for employee contributions and $275 for out-of-pocket costs.  

In absolute dollars, the total MMI has increased about $6,011 since 2006. Employers have absorbed $3,023 of this increase, while employees have shared $2,988 of it.  

The 2011 Milliman Medical Index report is here.