Average U.S. Family of 4 Will Use $12,214 in Medical Products, Services in 2005,

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Average U.S. Family of 4 Will Use $12,214 in Medical Products,

Services in 2005, Study Says

27 May 2005 Medical News Today

The average US family of four will use $12,214 worth of medical

products and services in 2005, up 45% from $8,414 in 2001, according

to a new report by... Milliman, the Washington Times reports

(Higgins, Washington Times, 5/26). The report -- the first on

consumer health care costs culled from the new Milliman Medical

Index -- was based on health insurance information for more than 15

million insured U.S. residents (Whitehouse, Dow /Wall Street

Journal, 5/26).

The report examined medical costs for a family with two adults and

two children under age 10 who were covered by a PPO. It focused

solely on costs for medical care at the point of service and did not

include health insurance premiums (Washington Times, 5/26). The

report also did not examine over-the-counter drug spending and the

cost of medical treatments not covered by health insurance (Croghan,

New York Daily News, 5/26).

Findings

The report found that the average family will pay about 17% -- or

$2,035 -- of its total health care costs in 2005, with a health plan

paying the remainder. The largest single expense for families is

projected to be physician visits, making up 37% of the total medical

spending for 2005 at $4,528. Total spending on physician visits,

which includes both checkups and specialty or surgical care,

increased 8%, or $337, from 2004, according to the report, which

attributed the increase in part to more frequent physician visits.

Inpatient hospital care is expected to be the second-largest expense

in 2005, making up 30%, or $3,704, of total family spending. The

report attributed the high cost of inpatient care in part to new

technology, longer hospital stays and higher operating costs

(Washington Times, 5/26). Outpatient hospital services and

prescription drugs each are projected to account for 15% and other

medical services will account for 3% of the total health spending

(Washington Times graphic, 5/26). According to the New York Daily

News, the report found that families pay 25.8% of the annual cost of

their prescription drugs out of pocket (New York Daily News, 5/26).

The report attributed the large percentage of spending on

prescription drugs to higher drug prices, an increase in the number

of medications on the market and more direct-to-consumer advertising.

Report co-author Bill said that ongoing increases in overall

health care costs will result in employers increasingly shifting

health care costs onto consumers (Washington Times, 5/26).

" Reprinted with permission from kaisernetwork.org kaisernetwork.org.