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Average Family Medical Costs Will Exceed $12,200 This Year | WSJ | 5.26.05

NEW YORK — The average family of four with an employer-sponsored health plan will spend more than $12,200 on medical expenses in 2005, up from just $8,400 a year in 2001, according to a new report.

Employers, however, continue to absorb the bulk of that cost, leaving the average family of four covering just 17% of the overall cost, according to the report conducted by actuarial and consulting firm Milliman.

That’s not to say that employees haven’t been burdened by the rapid rise in medical costs in recent years. Employees’ total share of the overall cost has remained steady at about 17% since 2001, according to the report. As spending rises, however, employees are coughing up more to meet their share. In 2005, the average family of four is expected to hand over roughly $2,035 in out-of-pocket expenses, up from $1,925 in 2004 and $1,480 in 2001.

The biggest expenditure is hospital care in 2005, at 45% of the total, followed by physician costs at 37%, pharmaceuticals at 15%. Overall, costs rose 9.1% in 2005, down slightly from 10.1% in 2004 and 2003. …

MMI Report (PDF)

Approximately 10% increase in family costs/year for the last four years!