Rising Health Care Benefit Costs Show No Sign of Abating in Asia Pacific, Willis Towers Watson Survey Finds
The cost of employer-provided health care benefits in
The 2017
Table 1.
Click here to see the table (https://www.willistowerswatson.com/en/press/2017/08/rising-health-care-benefit-costs-show-no-sign-of-abating-in-asia-pacific)
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 behaviour. Almost half (46%) cited overuse of care due to employees seeking inappropriate care.
"Controlling rising medical costs is without question a top priority for insurers and employers in the region. In
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.
Interestingly, in
"To understand -- and try to rein in -- medical costs, employers should understand what drives them, and then think about solutions," said
Wellness -- another piece of the puzzle
Health promotion programmes are also gaining traction. Nearly two in three respondents (65%) now offer (either directly or through a partner) personal health risk assessments with another 10% planning to do so next year. Second medical opinions are offered by 49% with another 18% planning to do so. Notably, almost six in 10 (57%) insurers offer lifestyle and health education programmes, and these are expected to grow to nearly 79% next year.
"Wellness programmes can provide another piece of the puzzle by promoting behaviour change. They not only hold great promise for addressing non-communicable diseases, they can also address ones that arise from lifestyle choices impacting Asian employees such as smoking, poor eating habits and lack of regular exercise," said Luah. "While respondents' health promotion programmes continue to grow in
Other findings from the survey include:
Non-communicable diseases. Insurers in
Having good quality data and using it properly is important for companies in managing medical costs. Respondents in
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
About the survey
The 2017
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