As healthcare costs in the U.S. have nearly tripled since 2005, Black families are bearing a disproportionate financial burden. A recent report from the Milliman Medical Index shows that the average family of four now pays over $35,000 annually for healthcare—up from just over $12,200 two decades ago. This surge includes premiums, hospital care, pharmacy expenses, and out-of-pocket costs, which alone exceed $7,800 per person.
While all families are feeling the squeeze, Black and Hispanic households with employer-sponsored insurance are losing a larger share of their wages to premiums. A 2024 JAMA report found that by 2019, healthcare premiums consumed 19.2% of compensation for Black families, compared to just 13.8% for white families. These disparities have persisted across three decades of analysis.
Wages have failed to keep pace, rising only 84% since 2005, while healthcare costs have soared by nearly 200%. This imbalance has widened the racial wealth gap, especially as Black families are more likely to be enrolled in plans with high deductibles or limited coverage. These “junk plans” often result in higher out-of-pocket expenses and denied claims for necessary care.
With over 45% of Black Americans relying on Medicaid or public insurance—and 8% uninsured—the financial strain is compounded by limited access to comprehensive coverage. As Congress debates cuts to public health programs, the stakes for Black families continue to rise.
See: “As Health Care Costs Triple, Black Families Pay Even More” (June 5, 2025)
