Asian Spectator

Employer Medical Benefit Costs in Asia Pacific to Grow 8.7 Percent in 2020, Aon Survey Forecasts

  • Written by Aon plc

SINGAPORE - Media OutReach[1] - 19 September 2019 - Medical costs in Asia Pacific are forecasted to increase from 8.6 percent in 2019 to 8.7 percent in 2020, according to the 2020 Global Medical Trend Rates Report released by Aon plc (NYSE: AON).[2][3]

Employer Medical Benefit Costs in Asia Pacific to Grow 8.7 Percent in 2020, Aon Survey Forecasts

In Singapore, employer-provided medical benefit costs will increase by 10 percent in 2020, outpacing average general inflation of 1.4 percent. This is due to a combination of factors such as an ageing population and a rise in chronic diseases including diabetes and high blood pressure.

However, projected medical trend rates vary significantly by location. In Asia, costs are expected to increase the most in Malaysia and Thailand, with average medical trend rates forecasted at 14 percent and 13.9 percent respectively.

In contrast, China and Hong Kong are projected to see an average medical trend rate increase of 7.5 percent and 8.1 percent respectively. Due to the adoption of advanced technology, the prices of medical goods and services are increasing at a level two to three times of general inflation. The penetration of mobile applications for online claims management has also contributed to the increase in claims reported by supplemental medical plans in China. In Hong Kong, the medical trend rate is driven by increasing levels of stress and respiratory infections.

Tim Dwyer, CEO of Health Solutions, Asia Pacific, Aon said, "Cost containment strategies are no longer enough to address medical inflation. Organisations in the region must introduce comprehensive programmes that address the physical, emotional, social and financial wellbeing of their employees. A proactive people strategy focusing on all these factors will lead to a healthier, engaged, and more productive workforce."

Health Care Benefit Cost Growth from 2019 to 2020

 

2019

2020

China

 

6.0%

7.5%

Hong Kong

 

8.3%

8.1%

India

 

9.0%

8.5%

Indonesia

 

13.0%

13.0%

Malaysia

 

16.0%

14.0%

Philippines

 

10.0%

9.2%

Singapore

 

10.0%

10.0%

Thailand

 

9.0%

13.9%

Vietnam

 

12.0%

11.0%

Aon's report confirms the increasing impact of non-communicable diseases on health care costs globally. In Asia Pacific, cardiovascular, cancer, musculoskeletal, ENT and gastrointestinal were the most prevalent health conditions driving health care claims.

Leading Medical Conditions in Asia Pacific and the World

Asia Pacific

Global

1)

Cardiovascular

Cardiovascular

2)

Cancer

Cancer

3)

Musculoskeletal

Diabetes

4)

ENT

High blood pressure

5)

Gastrointestinal

Musculoskeletal

Aon's report also confirms the growing prevalence of risks in Asia Pacific due to high blood pressure, obesity and ageing and unhealthy personal habits such as physical inactivity and bad nutrition.

Leading Health Risk Factors in Asia Pacific and the World

 

Asia Pacific

Global

1)

High blood pressure

High blood pressure

2)

Physical inactivity

Physical inactivity

3)

Bad nutrition

High cholesterol

4)

Obesity

Bad nutrition

5)

Ageing

Poor stress management

"Many of the risk factors lead to chronic conditions with long-term medical costs that make them difficult to treat and result in long-term medical cost increases," said Tim Nimmer, Aon's global chief actuary for Health Solutions. "As a large portion of our waking hours are spent on the job, the workplace is a logical place to create a healthier culture and change behaviours. Our goal is to guide employers as they become more critical in helping individuals and their families to take a more active role in managing their health, including participating in health and well-being activities and better managing chronic conditions."

To view the report, visit https://healthresources.aon.com/reports-2/2020-global-medical-trend-rates-report.[4]

Methodology

The survey was conducted among 105 Aon offices, each one representative of a country, that broker, administer, or otherwise advise on employer-sponsored medical plans in each of the countries covered in this report. The survey responses reflect the medical trend expectations of the Aon professionals based on their interactions with clients and carriers represented in the portfolio of the firm's medical plan business in each country.

References

  1. ^ Media OutReach (www.media-outreach.com)
  2. ^ 2020 Global Medical Trend Rates Report (healthresources.aon.com)
  3. ^ Aon plc (www.aon.com)
  4. ^ https://healthresources.aon.com/reports-2/2020-global-medical-trend-rates-report (healthresources.aon.com)

Authors: Aon plc

Read more http://www.media-outreach.com/release.php/View/13642#Contact

Magazine

Di bawah standar WHO: 3 alasan anggaran kesehatan harus ditingkatkan di era Prabowo

Prabowo-Gibran yang pencalonannya sebagai Presiden dan Wakil Presiden memantik kontroversi telah mulai bekerja sejak 20 Oktober 2024.Untuk mengawal pemerintahan mereka, kami menerbitkan edisi khusus #...

Teknologi baru sel surya tandem pecahkan rekor dunia dalam efisiensi energi

Thanun Vongsuravanich / ShutterstockPanel surya yang dipasang di atap rumah dan lahan pembangkit energi skala besar telah menjadi pemandangan biasa di berbagai belahan dunia. Tenaga surya kini menjadi...

Seperti ‘trick or treat’, film horor adalah ciri khas Halloween−tapi mengapa harus berdarah-darah?

Banyak sekali film horor di tahun 2024, dan banyak di antaranya yang mempertontonkan adegan berdarah secara terang-terangan. Tahun ini, sejumlah film ‘berdarah’ memasuki pasaran, seperti I...



NewsServices.com

Content & Technology Connecting Global Audiences

More Information - Less Opinion