Global healthcare benefit costs projected to jump 10% in 2023, WTW survey finds

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[{"type":"text","content":"Inflation and increased healthcare utilization are driving forces behind largest increase in 15 years\nARLINGTON, Va., Oct. 13, 2022 (GLOBE NEWSWIRE) -- Widespread inflation and increasing healthcare utilization are combining to drive projected increases in global healthcare benefit costs to their highest level in nearly 15 years, according to a survey of global medical insurers conducted by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. The survey found little relief in sight, with over three-fourths of insurers (78%) anticipating higher or significantly higher increases over the next three years. The 2023 Global Medical Trends Survey reveals that the healthcare benefit cost trend rose from 8.2% in 2021 to a higher-than-anticipated 8.8% in 2022 — and is projected to rise yet further in 2023 to a stubbornly high global average of 10%. The cost trend increases will hit many regions, including Latin America (where average increases are projected to climb from 18.2% to 18.9%), Asia Pacific (climbing from 6.9% to 10.2%), and the Middle East and Africa (climbing from 10.5% to 11.5%). Even Europe, which has traditionally seen much smaller cost increases, is not excluded from the record levels of trend. For 2023, average increases in Europe are expected to rise to 8.6% versus 8.0% in 2022. The one region with an expected decrease in medical trend is North America, where trend is projected to drop from 9.4% in 2022 to 6.5% in 2023, although employers are not necessarily seeing this yet. “Worldwide general inflation, overall instability in the global economy, increased healthcare utilization in the wake of the pandemic and a dynamic labor market require employers and insurer to think and act differently to address these issues in a meaningful way,” said Eric McMurray, global head of Health & Benefits, WTW. “Old solutions will not work. Cost shifting is not an option. There’s a critical need for innovation, strategy and new solutions to have any substantive impact. Those that don’t lead will fall behind in their ability to manage cost and retain key talent.“ Global medical trends: Healthcare benefit cost growth, 2021 – 2023 202120222023 projectedGlobal+8.2%8.8%10.0%North America9.1%9.4%6.5%Latin America+15.1%18.2%18.9%Asia Pacific 9.8%6.9%10.2%Europe 5.6%8.0%8.6%Middle East/Africa 12.4%10.5%11.5% +Global and ...

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