Medical trend in Asia Pacific is projected to increase to 7.6% in 2022
From 5.4% in 2020 to 7.0% in 2021 and to 7.6% in 2022 (projected)
Gross medical trend in 2022 (projected):
- Australia: 4.3%
- China: 8.3%
- Hong Kong: 8.2%
- India: 23.5%
- Malaysia: 16.2%
- Philippines: 14.4%
- Singapore: 9.0%
- Taiwan: 6.8%
- Thailand: 9.2%
- Vietnam: 9.0%
Over six in 10 insurers anticipate higher or significantly higher medical trend over the next three years
What’s driving the cost increase?
External factors
- Higher costs of new medical technologies at 55%
- Profit motives of providers at 47%
- Epidemics and global pandemics (including COVID-19) at 37%
- Current or recent economic environment at 23%
- Limited/poor networks to effectively control costs at 19%
Provider and employer behaviour
- Overprescribing or recommending too many services at 64%
- Overuse of care by insured members at 59%
- Underuse or lack of preventive services at 38%
- Insured members’ poor health habits at 35%
- Poor quality or misuse of care at 29%
Top four conditions currently by cost
- Cancer at 76% (also highest globally)
- Cardiovascular at 62%
- Musculoskeletal at 48%
- Digestive system at 30%
Managing the medical trend
How typical are the following cost-sharing approaches for the medical products you offer?
51%: Member coinsurance (fixed percentage of services)
36%: Annual limit on out-of-pocket expenses
35%: Deductible
32%: Member copays
Note: The percentages above comprise participants who responded with "typical" or "very typical".
Despite rising costs, employers prioritise wellbeing
What is the biggest change your organisation has made to its medical portfolio in 2021?
- 35% of employers said the addition of new wellbeing services
- 26% of employers said addition of telehealth services or features
Telehealth has slower pick up in Asia
Do you offer telehealth through your current plans?
- 52% from Global said Yes – across all plans/portfolio while only 27% in Asia Pacific
- 28% from Global said Yes – only for select plans/clients while 50% in Asia Pacific
- 10% from Global said No – not expected to be added soon compared to 21% in Asia Pacific
Next steps for employers
- Understand and track your workforce’s health using claims and other data to make informed decisions
- As rates of emergence from the pandemic vary, take advantage of digital tools such as telehealth
- The mental wellbeing of employees continues to be a key employer focus: Review how wellbeing can be incorporated into core benefits
Source: 2022 Global Medical Trends Survey – Asia Pacific
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