Healthcare benefit costs shouldered by employers are expected to increase by over 8 percent worldwide next year, a survey conducted among medical insurers showed.<\/p>\n
The study conducted by Nasdaq-listed Willis Towers Watson, a leading global advisory, broking, and solutions company, showed that the healthcare benefit costs will make a rebound after incurring a significant impact on healthcare utilization and overall costs this year.<\/p>\n
The 2021 Global Medical Trends Survey<\/a>, the largest of its kind, was conducted between July and September 2020 and reflects responses from 287 leading medical insurers operating in 76 countries.<\/p>\n The survey found that medical insurers globally project health care benefit costs will take a sudden drop in 2020 before rebounding to 8.1% in 2021, up from 5.9% this year and 7.2% in 2019.<\/p>\n Average increases in the five regions next year will range from 5.8% in Europe to 13.6% in Latin America. \u00a0Growth in healthcare benefit costs was also noted in North America from 7.1%, Asia Pacific from 8.5%, and the Middle East and Africa at 10%.<\/p>\n Health care benefit cost increases in the United States are expected to remain stable at 7.3% next year.<\/p>\n The global study also found that over two-thirds or 67%of respondents expect medical costs are going to accelerate over the next three years.<\/p>\n In the Middle East and Africa, almost 90% of medical insurers expect higher medical trends over the next three years followed by insurers in Europe (77%). Only 40% of Asia Pacific insurers, however, expect a higher medical trend.<\/p>\n \u201cThe pandemic undoubtedly had a major impact on slowing trend increases this year as it sparked a sharp decline in non-urgent surgeries and elective care,\u201d said Francis Coleman, managing director, Willis Towers Watson.<\/p><\/blockquote>\n<\/blockquote>\n \u201cWhile most, but not all, countries experienced a decrease in trend this year, \u00a0that is expected to be short-lived. In fact, we expect to see significant volatility in 2021 results, which are dependent on the impact of COVID-19 and whether a vaccine becomes available early in the year, who pays for it, and the extent of its availability,\u201d Coleman said.<\/p>\n Also, Coleman stressed there is uncertainty about how COVID-19 testing and treatment costs for 2021 will continue to be split between government, insurers, and employers.<\/p>\n\n
What are the healthcare findings of the 2021 Global Medical Trends Survey?<\/h2>\n