Adam Schenck, Principal and Managing Director, Fund Services for Milliman, joined Zoe Hunt, Host of RIA Channel, to discuss the Milliman Healthcare Inflation ETFs, MHIG and MHIP, and how advisors can help investors navigate rising healthcare costs.
Schenck encourages advisors who are helping clients mitigate the effects of rising costs to start by quantifying the issue, pointing to Milliman’s annual indices. Milliman’s Retiree Health Cost Index estimates that the average couple retiring in 2026 could spend more than $600,000 over their remaining lifetimes on standard Medicare, Medigap Plan G, and Part D. Meanwhile, the Milliman Medical Index shows healthcare costs rising 7.9% from 2025 to 2026 for an individual covered by a typical corporate plan.
Drawing on decades of healthcare actuarial and risk management experience, Milliman launched its Healthcare Inflation ETFs, purpose-built strategies that seek to hedge the rising cost of healthcare. The Milliman Healthcare Inflation Guard ETF (MHIG) seeks to keep pace with U.S. healthcare cost inflation, while the Milliman Healthcare Inflation Plus ETF (MHIP) seeks to outpace it. The strategies leverage healthcare claims and other data to construct portfolios incorporating healthcare equities, broader equities, a diversification bucket, and a Treasury strategy.
Schenck also highlights Milliman’s Retirement Healthcare Costs Calculator, which helps investors estimate future healthcare expenses based on factors including age, retirement timing, location, and health status. The calculator provides estimates of projected healthcare costs and the amount investors may need to set aside to help keep pace with inflation.
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