Global healthcare benefit cost increases — on average — will hold steady in 2022 says Willis Towers Watson

About this update from Willis Towers Watson Public Limited Company

[{"type":"text","content":"Costs by region, however, will be marked by price volatility due to the uneven global trajectory of the pandemic\nARLINGTON, Va., Nov. 16, 2021 (GLOBE NEWSWIRE) -- Employer-sponsored healthcare benefit cost trends are expected to increase 8.1% on average globally in 2022, a similar level to this year, according to a survey of medical insurers. Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, conducted the 2022 Global Medical Trends Survey. Notably, the survey disclosed sizeable variation in cost trend increases by region. With COVID-19 surging in different countries at various times in 2020 and 2021, survey results showed the pandemic’s asymmetrical arc created considerable volatility in healthcare utilization and costs around the world. When comparing specific geographical regions, insurers expect cost trends to be as high as 14.2% in Latin America next year, while in the U.S. costs are projected to increase by 7.6% according to other Willis Towers Watson research. Survey respondents anticipate price increases of 10.6% in the Middle East and Africa, 7.6% in Asia Pacific and 6.7% across Europe. Looking ahead, medical insurers expect healthcare cost trends to accelerate beyond 2022, with over three-quarters projecting higher or significantly higher costs over the next three years. “COVID-19 has produced the biggest impact to global medical trend variation the industry has seen, and we expect the repercussion and volatility from it to extend into 2022 and beyond,” said Eric McMurray, Global head of Health and Benefits, Willis Towers Watson. “Countries and employers are feeling the impact differently. Some have experienced the recovery’s demand for regular medical services in 2021, while others will see it next year or after. The pandemic, combined with the changing face of work, has had a significant effect on medical trends, delivery of services and the future drivers of medical claims.” According to the survey, medical insurers acknowledge the pandemic has really helped accelerate telehealth services, underscored by the potential for cost reductions that virtual healthcare creates. Over half of global insurers now offer telehealth across all plans, and nearly four in 10 insurers (37%) identified the addition of telehealth services as the biggest change to their medical portfolios in ...

More updates from Willis Towers Watson Public Limited Company