Global health care benefit cost increases expected to jump by more than 8% in 2021, Willis Towers Watson survey finds

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[{"type":"text","content":"Sharp increase follows a slowdown in cost increases this year as COVID-19 affected care utilization and overall costs\nARLINGTON, Va., Oct. 06, 2020 (GLOBE NEWSWIRE) -- Employer-sponsored health care benefit costs are expected to increase by more than 8% around the globe next year following a year in which the pandemic has had a significant impact on health care utilization and overall costs, according to a survey of medical insurers by Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company. \n The 2021 Global Medical Trends Survey, the largest of its kind, 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. Average increases in the five regions next year will range from 5.8% in Europe to 13.6% in Latin America. Health care benefit cost increases in the U.S. are expected to remain stable at 7.3% next year, according to other Willis Towers Watson research.The study also found that over two-thirds (67%) of respondents expect medical costs will continue to accelerate over the next three years. Almost 90% of Middle East and Africa insurers expect higher medical trends over the next three years followed by insurers in Europe (77%). Only 40% of Asia Pacific insurers expect a higher medical trend. Global medical trends: Health care benefit cost growth, 2019 – 2021 2019 2020 2021 projectedGlobal+7.2%5.9%8.1%North America5.6%2.8%7.1%Latin America+10.8%9.0%13.6%Asia Pacific 7.5%6.2%8.5%Europe 5.6%4.2%5.8%Middle East/Africa 8.6%8.7%10.0% *Projected +Global and regional trend rates are weighted based on GDP per capita. Due to the hyperinflationary nature of the Venezuelan economy, Venezuela has been excluded from Latin America regional and global totals. “The 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,” said Francis Coleman, managing director, Willis Towers Watson. “While most, but not all, countries experienced a decrease in trend this year, that 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 exte...

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