Milliman Indicates 2009 Medical Cost for 'American family of four' Exceeds $16,700...

Milliman Indicates 2009 Medical Cost for 'American family of four' Exceeds
$16,700 Based on 7.4% Cost Increase

Current economic conditions and the unknown effect of healthcare reform create
unprecedented cost uncertainty

SEATTLE, May 18 /PRNewswire/ -- Milliman, Inc., one of the premier global
consulting and actuarial firms, announced today that average total medical
spending for its "typical American family of four" reached $16,771, an
increase of $1,162. While cost trends are decelerating for the third-straight
year, the total-dollar increase is the highest since 2006.

The Milliman Medical Index (MMI) tracks the changes in average yearly
healthcare costs when the family of four is covered by an employer-sponsored
preferred provider organization (PPO). The new Milliman study provides not
only a total cost number for this family but also the share of costs between
employers and employees. It also offers cost differences among 14 metropolitan
areas.

"Among lost jobs, lost revenue, strained government budgets, consumer
insecurity, and an uncertain future, the macroeconomic climate is affecting
healthcare costs," said study co-author Lorraine Mayne, Milliman principal and
consulting actuary. "Throw in healthcare reform and you have a cost trend
environment unlike any we've seen in recent memory."
"The macroeconomic cost pressures are being borne both by employees and
employers," said MMI co-author Ron Cornwell, Milliman principal and consulting
actuary. "Employers still pay the majority -- 59% this year. Employer
subsidies have increased about $500 while employees have seen increases of
about $650, including $500 for employee contributions and $150 for employee
out-of-pocket costs."
Medical costs for a family are determined by the number, type, and cost of
healthcare services that they utilize and the amounts that the employee's
health plan pays medical providers for these services. Utilization of medical
services for a particular family varies significantly based on the family's
ages, geographic area, health status, and other factors. Among the 14
metropolitan areas Milliman annually studies, healthcare costs varied by more
than 30%, with the most-expensive city, Miami, becoming the first to pass the
$20,000 per-family mark and the least-expensive city, Phoenix, still below
$15,000.

The MMI is based on Milliman's analysis of historical claim data and
understanding of trends in utilization and cost. The complete Milliman Medical
Index is available at www.milliman.com, or by calling Lorraine Mayne at
801.924.1390 or Jeremy Engdahl-Johnson at 646.473.3021.

About Milliman
Milliman is among the world's largest independent actuarial and consulting
firms. Founded in Seattle in 1947 as Milliman & Robertson, the company
currently has 49 offices in key locations worldwide. Milliman employs more
than 2100 people, with a professional staff of more than 1100 qualified
consultants and actuaries, including specialists ranging from clinicians to
economists. The firm has consulting practices in healthcare, employee
benefits, property and casualty insurance, life insurance, and financial
services. Milliman serves the full spectrum of business, financial,
government, union, education, and nonprofit organizations. For further
information, visit www.milliman.com.

SOURCE Milliman, Inc.

Jeremy Engdahl-Johnson of Milliman, Inc., +1-646-473-3021,
jeremy.engdahl-johnson@milliman.com