Average American Family Spends More on Healthcare Than Groceries, Milliman Report reveals

In spending about $22,030 every year, the average American family spends more on healthcare instead of the groceries, according to the 2013 Milliman Medical Index (MMI).

In explaining the costs involved in detail, researchers said, “The total share of this cost borne by the family-$9144 in payroll deductions and out-of-pocket costs-now exceeds the cost of groceries for the MMI’s typical family-of-four. The out-of-pocket-cost alone-$3600 for co-pays, coinsurance, and other cost sharing-is more than the average US household spends on gas in a year.”

Compared to this year, 2012 saw total costs at $20,728, indicating a 6.3 percent rise every year for the last four years and amounting to $1300.

The researchers have only been able to speculate as to why these healthcare costs are increasing and include the online sale of designer drugs, the integration of medical providers as well as the approval of the Patient Protection and the Affordable Care Act (ACA).

While it is plain to see that the reforms by ACA will have an impact on literally every aspect of healthcare but it is noteworthy that a family of four will be exempted from most of these expenditures especially if they’re part of a larger group health plan.

What they also mentioned that was while most families will not notice how sizeable this cost compared to other household costs, the part that the employer pays for healthcare is quite substantial.

With that said, what was also noticed was the costs paid out by families has been increasing over the years even if it only 41 percent of every healthcare dollar.