The trend: Healthcare costs for the average American who gets coverage through their employer increased 6.7% YoY in 2025, up to $7,871, according to the just-released 2025 Milliman Medical Index (MMI). Healthcare costs for a hypothetical family of four (two parents under age 50 and two kids under age four) spiked to $35,119, up 6.2%.

• These figures include the employer’s contribution, the employee’s contribution through premiums, and the employee’s out-of-pocket costs when using healthcare services.
• Employers are paying a greater share of total healthcare costs for workers (58% in 2025 vs. 42% in 2024). But MMI noted that employers’ share has decreased since 2005, when it was paying 61% of the total, on average.

Quantifying the rise of healthcare costs: That same family’s healthcare costs in 2025 ($35,119) is nearly triple the amount it was in 2005 ($12,214).

• Healthcare costs have outpaced wage increases and inflation during this 20-year timeframe, per MMI.
• Annual growth in healthcare costs has averaged 6.1% since 2005, far outpacing any other household expense, according to MMI.

Driving the trend: Costs of pharmaceuticals (up 9.7%) and outpatient care (up 8.5%) are driving most of the recent increase. Together, outpatient care and pharmacy accounted for 69% of the year-over-year cost increase for the average person.