Prescription Drugs, Outpatient Care Drive Rise In Health Care Costs In 2025

Health care costs continue to climb, with new data showing expenses for the average American household have nearly tripled the past 20 years.

The Milliman Medical Index, an annual analysis of health care costs, estimates a family of four will pay $35,119 for health care this year, while individuals will pay $7,871.

Milliman researchers found prescription drug prices are a major driver, up 9.7% from last year. Complex procedures performed outside hospitals are also fueling the increase. Spending on outpatient facility care has surged 286% since 2005.

As prices rise, many Americans are struggling to afford care. A KFF survey found that nearly half of U.S. adults say it’s difficult to cover medical expenses; 1 in 4 Americans are delaying care due to costs and 1 in 10 are skipping doses or splitting pills to save money.

“Annual growth has averaged 6.1%, far outpacing any other household expense,” Deana Bell, a principal and consulting actuary at Milliman, shared in a press release. “No other cost category has risen as steeply or as consistently over the past two decades.”

How much have your health care costs risen? Are you struggling to afford care? Share your story with Voices for Affordable Health.