Increasing health-care costs could threaten the livelihood of most American families by 2025, says the Pioneer Institute, a public policy research organization based in Boston.
Based on recent increases, health-costs are projected to rise much faster than either inflation or household income and could double over the next two decades, says the Pioneer Institute study.
Health-care costs for the average U.S. family could increase from $8,583 annually today to $13,213 by 2025, with some projections as high as $18,251, according to the report. In terms of proportion of earnings, these projections would be equivalent to 20 percent and 27 percent of the average household income by 2025.
The report adds that, left unchecked, costs by 2035 could reach $19,559 per year, according to the most optimistic scenario, and up to as much as $36,562, according to the least optimistic scenario. In terms of proportion of earnings, this would be equivalent to 24 percent and 45 percent of household income.
Health-care expenses currently consume 16 percent of median U.S. household income for families paying into employer-offered plans, according to Pioneer.