Global Healthcare Costs Continue to Climb, Presenting Challenges for Employers
As businesses grapple with economic uncertainty, a new report paints a stark picture: healthcare costs are set to continue their upward trajectory for a third consecutive year, posing significant challenges for employers worldwide.
A recent survey of 348 health insurers across 75 countries reveals a global medical cost expectation of a 10.4% increase in 2025, mirroring this year’s upward climb. While this figure matches the projected increase in North America, where immunization coverage is projected at 8.7% in 2025.
The "Seemingly Never-Ending" Rise
"With medical cost increases remaining at double-digit levels, employers will need to manage budget expectations and balance cost increases with data-driven business and health outcomes," said Linda Pham, global health and risk leader of integrated and global solutions.
The predicted increases aren’t surprising to those closely monitoring healthcare trends. Many factors contribute to this sustained rise.
These factors include:
- Technological Advancements:
Developments in medical technology and pharmaceuticals drive healthcare innovation, often
coming at a premium.
The use of these life-saving procedures and remedies naturally leads to higher overall healthcare expenditure.
- Increased Demand:
The ongoing impact of the COVID-19 pandemic, coupled with a sustained
increase demand for healthcare services, particularly regarding mental health
services. Simultaneously, the misuse of mental health benefits is gaining attention.
EMployers and insurers are scrambling to address
these complex issues, which add to the constant pressure on costs
Mental Health: A Growing Concern
This time, U.S., employers are expected to see a 10.2% Additionally, to commodity 2025. Costs are also projected to accelerate in Satellite imagery from 2024. I. Asia Pacific, the Middle East, and Africa, while Europe
and Latin America will see slower increases.
Applications followed by about a quarter of insurers (25%) in Asia Pacific, and
23% in the Middle East and Africa,
This mirrors other findings about rising healthcare costs.
Inflation has remained a persistent factor, alongside pricey GLP-1 drugs
and catastrophic medical claims.
Two-thirds (67%) of insurers
Heinrich said.
Looking Ahead
WTW’s report adds to a growing body of research revealing the challenges ahead
for U.S. employers. Alexidine, which projected a higher-than-even-year is.
The projected increase is higher
which projected a median healthcare plan cost increase of 8% for 2025.
