For 2026, the MMI projects these costs will be:
$37,824
for a family of four1
$8,460
for an average person
For more details, download the full report.
How much have healthcare costs increased over the past year?
Between 2025 and 2026, we estimate that employer-sponsored healthcare costs will grow by 7.9%, from $7,838 to $8,460 for the average person.2 This is the highest increase for the MMI in more than a decade, excluding the fluctuations experienced as a result of the COVID-19 pandemic. Outpatient facility care and pharmacy services are the primary drivers of cost increases in 2026, contributing to 69% of the year-over-year rise.
Healthcare costs for the MMI average person (2025 vs 2026)
Why are employer healthcare costs increasing?
There are many factors at play when it comes to increasing healthcare costs for employers and employees. GLP-1 drugs for diabetes and weight-loss management have become a meaningful and growing component of pharmacy spend, and will continue to impact employer pharmacy costs in 2026. Pharmacy is the fastest-growing cost component of the MMI in 2026, rising 14.8% year-over-year for the average person.
Outpatient facility care—that is, healthcare that does not require hospital admission—is the single largest component of employer-sponsored healthcare costs in 2026, representing approximately 31% of total spending. Outpatient costs have quadrupled for the MMI family of four since our study was first published in 2005. An increase in outpatient-administered drugs, such as specialty drugs, along with physician practice acquisitions and an ongoing shift from inpatient to outpatient care are the primary factors driving increases. Download the full report for a more in-depth look at outpatient cost growth.
2026 MMI components of spending for an average person
How much will your healthcare cost this year?
Enter your location and family characteristics below to estimate your total 2026 healthcare costs, including the portion of your healthcare spending that will go to your premium, doctor visits, out-of-pocket expenses, and prescriptions. All values in the tool below are listed as net of prescription drug rebates, including our 2026 "family of four" value.
About the Milliman Medical Index
Since 2005, the Milliman Medical Index has projected the total cost of healthcare for a hypothetical family of four covered by a typical employer-sponsored health plan. To reflect changing family demographics, the MMI now also projects healthcare costs for the average person.
Unlike many healthcare cost reports, the MMI measures the total cost of healthcare benefits, not just the employer's share of the costs, and not just premiums.
Get more in-depth data and analysis
1 The MMI value ($37,824) represents annual healthcare costs for a specially defined family of four, gross of pharmacy rebates, covered by employer-sponsored insurance. The average person cost ($8,460) and all other costs in this paper are net of pharmacy rebates unless otherwise noted.
2 Past MMI values have been restated to reflect information collected since last year’s publication. The restated 2025 value for the MMI family of four is $35,281, which has increased by 7.2% between 2025 and 2026.