The cost of employer-provided health care benefits around the world continues to climb with little sign of levelling off, according to a survey of medical insurers by consultant, Willis Towers Watson. The price of hospital/inpatient and outpatient medical services, advances in medical technology and the overprescribing of services are the main factors driving up costs.
Insurers predict costs will rise 7.8% on average this year, up from 7.3% in 2106, with the largest predicted rises being in Latin America. Cost increases in the UK are expected to hit 5% for the third year running, with the doubling of insurance premium tax from 6% to 12% being a primary driver.
Growing numbers of employers are offering preventive health care programmes as part of empowering employees to take more responsibility for their own health. Almost 40% offer wellbeing programmes (rising to three-quarters of employers in the US) and health promotion programmes are also gaining traction, for example, 65% of employers globally offer personal health risk assessments.
Cecil Hemingway, health benefits lead at Willis Towers Watson, said:
‘Controlling rising medical costs is without question a top priority for insurers and employers around the world. While progress is being made in some regions to stem costs, the vast majority of respondents continue to grapple with how to rein them in. And it’s not for a lack of effort or innovation. In fact, more employers are implementing both traditional and innovative approaches to managing rising costs.’