Every May since 2005, Milliman, an actuarial firm, has released the Milliman Medical Index, a comprehensive report that tracks healthcare costs for American families and individuals. This year’s report reveals that the cost of healthcare for a family of four in 2024 is a staggering $32,066, while for an individual, it stands at $7,151. Additionally, the index notes a significant 6.7 percent increase in medical costs from 2023 to 2024.
To truly grasp the impact of these numbers, we must put them into the broader context of American income levels. According to the latest Wage Statistics for Social Security, which our newsletter provides annually, 67.9 percent of Americans earn $61,220 or less, and 50 percent earn $40,847 or less. Furthermore, 80 percent of Americans make $80,000 per year or less.
Given these statistics, the financial strain on Americans becomes evident. For a large portion of the population, healthcare costs consume a substantial portion of their income. Specifically, for 67 percent of Americans, accessing the full cost of healthcare leaves them with very little money for other necessities. This often forces difficult choices between healthcare and essential needs like food, clothing, and shelter. Even those earning up to $80,000 per year find that healthcare costs can consume up to 40 percent of their income.
So, what does this mean for the average American family? The reality is stark. Many families are either struggling to pay for necessary healthcare or are foregoing it altogether to cover basic living expenses. This can lead to devastating long-term consequences, both financially and health-wise.
Given this situation, it’s crucial to consider alternative solutions. One perspective worth exploring is that of older generations—our grandparents. Imagine a scenario where a grandparent can ensure their grandchildren have access to quality healthcare without giving up control of their finances. Picture a grandmother or grandfather looking down from heaven, knowing their granddaughter has fallen seriously ill. With access to quality healthcare, she can recover and lead a healthy life. Without it, her illness could become chronic or even fatal.
Grandparents, ask yourselves: if you could make sure your grandchildren receive the healthcare they need without sacrificing your financial security, would you do it?
The Milliman Medical Index provides more than just numbers; it paints a picture of the critical state of healthcare affordability in America. As we navigate these challenging times, it’s essential to consider every possible avenue to ensure that our loved ones can access the healthcare they need. By engaging in thoughtful planning and leveraging available resources, we can work towards a future where no one has to choose between their health and their financial stability.
For more detailed insights and updates on healthcare costs, visit Morningstar.
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Welcome to the blog of Eddie James, CKA® where financial wisdom meets spiritual guidance. With over two decades of experience as a licensed financial professional, Eddie has dedicated his career to helping individuals and families navigate the complexities of wealth management. As a licensed pastor, he brings a unique perspective, integrating ethical and moral principles into his financial advice.
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