Continued High Medical Trend Rates: Top Claims Reveal the Impact of Lifestyle Choices
The 2016 Medical Trends Around the World Survey from Mercer Marsh Benefits highlights trends that are influencing medical plan costs today, predictions that will impact the cost of healthcare in the future, and what organizations, insurers and governments are doing in response. This year’s survey features responses from more than 170 insurers across 49 countries, confirming that the cost of providing medical care to employees continues to outpace inflation in most major economies. The good news is that the data shows that we – employees and employers – can take control of the solution. The importance of educating consumers and improving plan design to empower individuals to take control of their health has never been needed more than now.
Survey Says: High Medical Spend Continues
The cost of providing medical care to staff continues to vastly outpace inflation in 29 major economies. Employers should be aware that the aging global population and limited care standards, as well as the burden of lifestyle and chronic conditions, will continue to drive the high cost of medical care and have a significant impact on workforce productivity.
Among the survey highlights by region:
Europe was the region with the lowest levels of inflation - as reported by participating insurers - running at 7.8% in 2016 against a regional average rate of inflation of 2.5%.
Across the region, this year medical costs are expected in increase by 11.5% against an average regional inflation rate of 2.1%.
The Americas (excluding USA)
Costs in Canada are expected to increase by 6% in 2016 against a background inflation rate of 1.3%. Across Latin America, medical inflation averages 12.8% compared to an average inflation rate of 8%.
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About Mercer Marsh Benefits
Mercer Marsh Benefits provides clients with a single source for managing the costs, people risks, and complexities of employee benefits. The network is a combination of Mercer and Marsh local offices around the world, plus country correspondents who have been selected based on specific criteria. Our benefits experts, located in 135 countries and servicing clients in more than 150 countries, are deeply knowledgeable about their local markets. Through our locally established businesses, we have a unique common platform that allows us to serve clients with global consistency and locally unique solutions.