There’s a tidal wave coming in the direction of your healthcare.
More than 10 million Americans will receive government subsidies through the ACA to help defray the rapidly rising costs of healthcare. However, many more may be left helpless in the face of surging premiums. Individuals who earn more than $47,520 per year and the typical family of four earning more than $97,200 per year will not qualify for help. Perhaps more significantly for small businesses and their employees, those who choose to purchase private insurance “outside of Healthcare.gov or a state marketplace” are also not eligible for subsidies at all, regardless of income.
This may prove challenging for many consumers going forward as prices continue to climb. The Milwaukee Journal Sentinel reports that according to the annual Milliman Medical Index, the average total cost of health care for the typical family of four will be $25,826 this year. The Milliman Medical Index has more than tripled since 2001 when it first started keeping tabs on healthcare costs.
Rising Healthcare Costs Quick Facts:
- According to The Milliman Medical Index, average healthcare costs for a typical family of four will top $25,000.
- Employers will spend an average of $14,793 defraying medical expenses for a typical family of four.
- Milliman Medical Index only tracks people who receive health insurance through an employer. When including those over the age of 65, true healthcare expenses are even higher.
- According to The Federal Centers for Medicaid and Medicare, the United States spent an average of $9,523 per person on healthcare in 2014 alone.
- Much of the increase is being driven by the sharp increase in prescription drug prices.
Despite the relentless, upward march of medical costs in America, not everything is doom and gloom. The 4.7% increase in the index this year was the lowest since 2001 and was primarily driven by the spike in prescription drug prices. Nonetheless, the growth of healthcare costs still outpaces that of the national economy, wages, and other economic indicators.
Don’t let your company or your employees be adversely affected by the relentless rise in health care costs. For help navigating the ins and outs of what rising healthcare costs means for your business, consult with PEO Broker today and see why we are regarded as one of the top PEO companies in the PEO industry today.
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