Bangkok--22 Jun--Francom Asia
The cost of employer-provided health insurance is expected to increase by more than 10% in Asia Pacific in 2011, according to a new survey of health insurers conducted by Towers Watson (NYSE, NASDAQ: TW), a global professional services company. Additionally, little relief is in sight with the vast majority of respondents expecting higher medical costs over the next five years.
The Towers Watson Global Medical Trends survey, which includes responses from 170 medical insurers in 37 countries throughout Asia, Africa, Europe and the Americas, found that globally, the average medical cost trend in 2011 is expected to be 10.5% and 10.2% in Asia Pacific. Additionally, virtually all respondents (95%) show a medical trend that exceeds the rate of general inflation. Net inflation, the average global medical trend for 2009 was 6.9%.
The survey also found that while the economic recovery has somewhat slowed the sharp uptick in medical trends from the past couple of years, nearly three of four respondents (72%) of respondents expect costs to rise over the next five years. The most significant factors driving medical cost increases are new medical technology and the overuse of care, which are cited by 65% and 56% of respondents, respectively.
“The growing demand for private healthcare, particularly in developing nations, has placed enormous upward pressure on the cost of providing this valuable employee benefit.” said Andrew Heard, Managing Director, Asia Pacific Benefits. “With double-digit medical increases now the norm, employers and insurers will need to carefully monitor costs and begin to look at various cost management techniques and programs designed to help contain rising costs.”
Wellness Programs Embraced Globally
The survey noted that interest in wellness programs is growing both in Asia Pacific and the rest of the world with most respondents adding some form of wellness feature to their health care offerings. Globally, nearly three of four respondents (72%) offer employees lifestyle and health education programs while 63% offer personal health assessments. Four in ten respondents (40%) reported offering chronic condition or disease management programs.
“The increasing emphasis on wellness programs is good news for both employees and employers, especially those with providers who are now better equipped to offer wellness solutions to help with intervention strategies to management health costs and risks,” said Heard. “We definitely expect wellness will play a greater role in helping employers and insurers manage global medical costs going forward.”
Other findings from the Towers Watson survey include:
- The most effective tools for managing medical costs are those where the patient is either directed through specific networks where discounted costs of care can be obtained or where pre-approval is required for scheduled services. Both allow the insurer to better control the outcomes and costs.
- Three fourths of respondents (75%) cite cardiovascular among the top three conditions that cause the highest prevalence of medical claims while 63% cited cancer.
For additional information, please visit: http://www.towerswatson.com/globalmedicaltrends
?
About the Survey
This survey, which was conducted in September and October 2010, includes responses from 170 leading health insurers who provide medical insurance solutions to employers in 37 countries throughout Asia, Africa, Europe and the Americas. .
About Towers Watson
Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. The company offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at towerswatson.com.
PRESS ENQUIRIES :
Kharittha Khumpong / Praphapit Jumpee
Towers Watson Media Relations
C/O Francom Asia
Tel: 02 233 4338 ext. 22 or 12
Fax: 02 236 8030
E-mail:
[email protected]