A survey conducted by Willis Towers Watson shows an increment in the healthcare benefits costs by around 7.6 percent in 2022.
FREMONT, CA: In the APAC region, the survey conducted by Willis Towers Watson shows anticipations that healthcare benefits might increase by an average of 7.6 percent in 2022. After the recovery to 7 percent in 2021, the healthcare benefits costs in 2020 have projected to decline. The survey also disclosed sizable changes in cost trend developments by markets. Considerable volatility in healthcare utilization and costs globally were created by the pandemic's asymmetrical arc, as COVID 19 surged in different countries at various times in 2020 and 2021. According to the research, after comparing particular markets in APAC, the insurers expect cost trends to be projected at 8.3 percent and 9 percent in China, Singapore, and Vietnam, while the highest rates are identified in Malaysia at 16.2 percent and in India at 23.5 percent. Over the next three years, healthcare trends will accelerate beyond 2022, with six in ten projecting higher or significantly higher costs.
Further, speaking on this topic, markets and employers are having different impacts, as some are hoping to recover from demand for regular medical services in the coming years, while some have already recovered in 2021, says Cedric Luah, Head of Health and Benefits International. The factors like healthcare needs, delivery of services, and the future drivers of medical claims, which have been significantly affected by the pandemic and the changing face of work, are posing a massive impact on medical inflation trends. Additionally, the second-highest driver is the excess of care by insured members comprises 59 percent. Also, the underutilization of preventive services that holds 38 percent is another significant cost-driving factor that has developed yearly partly owing to the avoidance of medical care during the pandemic. Cancer, cardiovascular, and musculoskeletal are the leading three conditions by cost that have been highlighted by insurers in APAC, which is similar to last year’s findings.