August 8, 2017
India is projected to be in the top of the chart in the Asia Pacific region that would see maximum escalation of healthcare cost which are offered as a part of the employer benefits programme, according to the 2017 Global Medical Trends Survey.
In the region, India (20.0%), Indonesia (11.0%) and Malaysia (15.0%) are leading the upward cost trend, followed by Mainland China (10.3%), Hong Kong (9.6%) and the Philippines (9.6%).
The survey found that the medical insurers in Asia Pacific are projecting the gross cost of health care benefits to rise 8.6% this year. Globally, the projected increase is 7.8%. Furthermore, the outlook for reining in costs in the near term is not optimistic. Half of all insurers in Asia Pacific expect higher or significantly higher medical trend costs over the next three years.
When asked what are the most significant cost-driving factors outside the control of employers and vendors, almost three-quarters (71%) cited the high cost of medical technology, followed by providers’ profit motives (47%).
Nearly three-quarters of insurers (73%) ranked overuse of care due to medical practitioners recommending too many services as the most significant factor driving costs related to employee and provider behavior.
Managing the medical trend
More employers are implementing both traditional and innovative approaches to manage rising costs. According to the survey, requiring pre-approval for scheduled inpatient services, placing limits on certain medical services and using contracted networks of providers are cited as the most effective tools to help manage costs.
Other findings from the survey include:
Non-communicable diseases- Insurers in Asia Pacific report cancer (82%), cardiovascular disease (72%), and musculoskeletal/back illness (44%) as the top three diseases.
Having good quality data and using it properly is important for companies in managing medical costs- Respondents in Asia Pacific are mostlikely to receive high-level claims or detailed claim data identified by top 10 causes or medical conditions.
Managing stress- Concerns about employee stress continues to rise. While 61% of insurers globally now include treatment for mental health and stress in their standard medical insurance programmes, only 36% in Asia Pacific offer such coverage. Mental health remains an exclusion in many countries in the region.