2021 Milliman Study


Interesting Milliman study on health care costs. A lot has changed since 1973………..

PPO Plans

Employee rate = $553 / month

Family rate =$2,354 / month

Back in 1973 when I worked as a salesman for Blue Cross:

Employee rate = $18

Family rate =$35

We were selling indemnity plans back then. Major Medical hadn’t been invented yet. Hospital room allowance was $15 / day.

What happened? Indemnity plans were replaced with % applied to “allowed” charges

Now we are seeing a return to indemnity plans (Reference Based Pricing) 50 years later.