The
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
Global medical trends: Healthcare benefit cost increases, 2022 – 2024
2022 | 2023 | 2024 projected | |
Global+ | 7.4% | 10.7% | 9.9% |
8.0% | 9.8% | 9.4% | |
10.5% | 12.4% | 11.6% | |
7.2% | 9.9% | 9.9% | |
6.7% | 10.9% | 9.3% | |
9.8% | 11.3% | 12.1% |
*Global and
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
About the survey
WTW conducted its 2024
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.
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Source:
2023 GlobeNewswire, Inc., source