Global healthcare benefit cost increases projected to largely continue into 2024, WTW survey finds
29 Novembro 2023 - 11:06AM
Global medical care benefit cost increases, as reported by health
insurers, show little to no decline in 2024, one year after hitting
a historic double-digit inflation, according to a survey by WTW
(NASDAQ: WTW), a leading global advisory, broking and solutions
company. Adding further emphasis to the continued risk of high
medical costs, nearly three-fifths of insurers (58%) anticipate
higher or significantly higher increases over the subsequent three
years.
The WTW Global Medical Trends Survey found the cost of medical
care globally jumped from 7.4% in 2022 to a record high of 10.7% in
2023. The insurer-reported cost trend for 2024 is projected to be
an average of 9.9%. This is influenced by variations in regions
around the world, with some showing little to no change from 2023
to 2024, and others registering slight decreases or increases. The
sharpest drop in the rate increase is projected in Europe — from
10.9% in 2023 to 9.3% in 2024 — the lowest increase projected in
any region. The one region with an expected increase in medical
trend is the Middle East/Africa, where increases are projected to
rise from 11.3% in 2023 to 12.1% in 2024.
Several factors are contributing to the variations noted above.
The spread of COVID-19 in waves during the pandemic produced wide
swings in the utilization of acute medical and outpatient care that
have largely leveled out or waned. The spike in elective
procedures, consultations and other medical care resulting from
delayed or postponed care due to the pandemic has eased; however,
the severity of some missed diagnoses and care needed now has
worsened. In addition, global inflation, which was a significant
factor in driving up healthcare costs, has moderated in 2023 and is
expected to continue to fall going into 2024.
“While some cost increases are projected to ease in 2024, they
remain at significantly high levels,” said Linda Pham, senior
director, Integrated & Global Solutions, WTW. “The high cost of
new medical technologies is a key reason for the persistently high
trend. Furthermore, in some regions, ongoing geopolitical conflicts
and resulting displaced populations have negatively affected
medical costs due to an increased need for care and reduced
availability of providers.”
Global medical trends: Healthcare
benefit cost increases, 2022 – 2024
|
2022 |
2023 |
2024 projected |
Global+ |
7.4% |
10.7% |
9.9% |
North America |
8.0% |
9.8% |
9.4% |
Latin America |
10.5% |
12.4% |
11.6% |
Asia Pacific |
7.2% |
9.9% |
9.9% |
Europe |
6.7% |
10.9% |
9.3% |
Middle East/Africa |
9.8% |
11.3% |
12.1% |
*Global and Latin America numbers exclude Argentina and
Venezuela
The leading driver of medical costs, according to insurers,
continues to be overuse of care (59%) due to medical professionals
recommending too many services or overprescribing. Nearly half of
insurers (49%) also indicate that insured members’ poor health
habits are among the top factors. The underuse or lack of
preventive services (47%) is also a significant cost driver.
The addition of wellbeing services (54%) was the biggest change
insurers made to their medical portfolio in 2023. The survey also
found telehealth offerings continue to be a priority for insurers.
Four in 10 respondents (41%) added telehealth services in 2023,
making this the second most prevalent change insurers made to their
offerings.
“Employers are facing both higher cost increases as well as the
potential for significant volatility, making it even more difficult
to budget and plan. Faced with this environment, inaction is not an
option. Employers must understand their risk tolerance, review
their current offerings to ensure optimal value and explore
strategies to balance cost pressures with the need to support the
employee experience. By understanding the factors that affect
healthcare and drive costs in their populations, employers can
effectively combat the ever-present threat of rising costs,” said
Debby Moorman, head of Health & Benefits, North America,
WTW.
About the survey
WTW conducted its 2024 Global Medical Trends Survey between June
and August 2023. A total of 266 leading insurers representing 66
countries participated in the survey.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led
solutions in the areas of people, risk and capital. Leveraging the
global view and local expertise of our colleagues serving 140
countries and markets, we help organizations sharpen their
strategy, enhance organizational resilience, motivate their
workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover
opportunities for sustainable success—and provide perspective that
moves you. Learn more at wtwco.com.
Media contacts
Ed Emerman: +1 609 240 2766eemerman@eaglepr.com
Ileana Feoli: +1 212 309 5504ileana.feoli@wtwco.com
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