$35K in 2025: RAV4, Healthcare, or a Playground?
Family Healthcare Costs Top $35K, Driven by Outpatient Care and Pharmacy
Updated May 27, 2025
The annual Milliman Medical Index (MMI) reveals that healthcare expenses for a typical American family of four have surpassed $35,000 in 2025. This milestone underscores the growing financial strain of healthcare on households, prompting a closer look at the factors driving these costs.
According to the MMI, the primary drivers behind this increase are outpatient care and pharmacy costs. Pharmacy costs saw a rise of 9.7%, while outpatient facility care grew by 8.5% for the average patient. These two areas account for a important portion of the overall healthcare spending increase.
The MMI considers five key components of healthcare spending: outpatient facility care, professional services, pharmacy, inpatient care, and other miscellaneous items. Outpatient care constitutes approximately one-third of total spending, followed by professional services at 28%, pharmacy at 20%, and inpatient care at 17%.
When compared to the Consumer Price Index (CPI), healthcare spending has shown a significant spike, particularly after the disruption caused by the COVID-19 pandemic. While the rate of growth slightly decreased from 2024 to 2025, the MMI percent change was still nearly four times higher than consumer price inflation.
The MMI report highlights that the growth in healthcare costs far exceeds that of wages,bread,and electricity,emphasizing the trade-offs that many U.S. workers face in order to secure healthcare coverage.
What’s next
As healthcare costs continue to rise,consumers may seek relief in various ways,possibly impacting medical offices,prescription drug spending,and elective surgeries. The uncertainties surrounding Medicaid, Medicare, and Social Security could also affect providers’ operating margins.