Study: Health Care Costs Rising for Families With Job-Based PPO Coverage

The average annual health care costs for a family of four with an employer-provided preferred provider plan increased by 6.9% from 2011 to 2012, to $20,728, according to a study released on Tuesday by Milliman, the Los Angeles Times reports.

The study found that employees on average will pay 41%, or $8,584, of the cost through premium contributions and out-of-pocket costs, while employers will cover the remainder (Terhune, Los Angeles Times, 3/15).

Further, the data revealed a wide variation in costs across the 14 cities surveyed. Miami had the highest annual cost, at $24,965, while Phoenix had the lowest, at $18,365 (Reichard, CQ HealthBeat, 5/15).

According to Milliman, the 6.9% increase was the smallest annual growth rate recorded by the consulting firm in 12 years, but the $1,335 increase was the largest jump in dollars (Los Angeles Times, 5/15).

Lorraine Mayne, a Milliman actuary, said the study "helps illustrate the challenge of controlling health care costs," noting that since "the total cost is already so high, even a slower rate of growth has a serious impact on family budgets" (CQ HealthBeat, 5/15).