Pension & Benefits News Cost of coverage for typical family of four reaches $28,653 in 2020
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Tuesday, June 9, 2020

Cost of coverage for typical family of four reaches $28,653 in 2020

By Pension and Benefits Editorial Staff

In 2020, the cost of health care coverage of a typical American family of four covered by an employer-sponsored preferred provider organization is $28,653, according to recent research from Milliman. The 2020 Milliman Medical Index (MMI) found that health care costs grew by 4.1 percent from 2019 to 2020. Milliman found that hospital costs are growing more quickly than costs for other services, climbing approximately 15 percent over the past three years, versus 10 percent for all other services combined.

Milliman projects that employers will subsidize their employees’ health care costs by paying an average of 60 percent of the total cost in 2020. The total cost of single coverage is projected to be $6,553. Of this, employers typically pay about $2,907, while the employee pays the remaining $2,646 (a combination of $1,598 in employee payroll deductions and $1,048 in out-of-pocket costs paid when utilizing health care services). A family of four shares 27 percent of the cost via employee contributions while the average person shares 24 percent. For family coverage, employers paid $16,368, while employees paid $7,703 ($4,582 for premium contributions and $4,582 for out-of-pocket expenses).

SOURCE: us.milliman.com

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