The good news for Memphis is that our total cost of healthcare for a typical family of four covered by a PPO increased only 5.7% from 2010 to 2011 compared to a national increase of 7.3% during that same time period. Memphis costs are now 4.3% above the national average, down from 6% above the national average in 2010.
The Milliman Medical Index looks at costs paid by the employer and the employee at a national level and at several key markets throughout the US, including Memphis.
Because Memphis' costs increased below the national average, Memphis moved down the list of highest cost markets from 5 to 6, switching places with Philadelphia, PA.
The bad news for Memphis is that costs did increase $1,089 from 2010 to 2011.
Other national major findings from the Milliman Medical Index 2011 include:
- Employees' share of the total cost increased from 36.8% in 2005 to 39.7% in 2011
- Increases in facility spending (inpatient and outpatient) account for over 60% of the total increase cost of healthcare
- Outpatient facility care increased 10% and was the cost component with the greatest increase.
- Inpatient utilization was flat but total cost per day increased 8.3%
- Employees bore the greatest share of the increase in total cost of healthcare with their payroll deductions increasing 9.3% and out-of-pocket cost sharing increasing 9.2%.
- Employers experienced a 6.0% increase in their total cost of healthcare.
Read the entire Milliman Medical Index 2011. You can also read the Milliman Medical Index 2010 for comparisons.