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Memphis Total Cost of Healthcare Increases Less Than National Average

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.

 

Posted by Cristie Travis at 6:15 PM

Comments

5/13/2011 at 09:49 AM by Jim Bailey

Great information. Any thoughts on why our cost increases have been less than other regions? What do you think has made the biggest difference?


5/13/2011 at 10:03 AM by Cristie Travis

We are looking into the details and will post once we know. Last year Milliman spoke at MBGH's Annual Conference and indicated that Memphis health care provider prices were in line but our utilization was higher than the national average. So, we will be looking to see if there was any change in our utilization patterns.


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