Employer-sponsored medical benefit costs are expected to increase 10% in 2022, four times the forecast general inflation rate for the region, a report has found.
Such costs rose by 3.5% in 2020 and by 8.8% in 2021, according to a Health Trend report released by Mercer Marsh Benefits (MMB).
The report surveyed 210 insurers globally, including 74 in Asia, and identified key trends influencing the future of employer-provided medical benefits.
Five countries in Asia experienced higher medical trend rates than the regional average in 2021: India with the highest medical inflation rate of 14%, followed by China (12%), Indonesia (10%), Vietnam (10%), and the Philippines (9%).
Cancer (55%), diseases of the circulatory system (43%) and Covid-19 (36%) were top cost drivers of medical claims, said MMB, which is a consultancy that analyses and advises cost management of employee benefits.
Asia has the most inadequate coverage in relation to mental health, the report found.
Only 34% of insurers provide coverage for outpatient treatments in mental health, and 32% do not offer any coverage for mental health at all.
The study also shows that 33% of insurers are making changes to facilitate more inclusive medical plan designs by allowing coverage for non-permanent or full-time workers.
More than half of respondents said they were either adding or considering extending eligible expenses that are more inclusive for women.
- George Russell
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