As medical inflation shows no sign of letting up, insurers are making a concerted shift towards putting in place the means to help plan members make smarter healthcare decisions, according to Mercer Marsh Benefits’ 2019 Medical Trends Around the World.
The average global medical trend rate observed for 2018 was 9.7%, with a similar increase expected for 2019 and even rates for 2020. Lifestyle factors continue to drive these increases: the top claims by cost and frequency being driven by circulatory, gastrointestinal and respiratory conditions.
In response, insurers continue to focus on cost containment measures, prioritising solutions that enhance access to quality healthcare: from virtual and digital health to added value services.
A focus on quality
According to the survey, the number of insurers investing in such initiatives has more than doubled: 29% now indicating that it’s a top strategic investment area, just behind data analytics at 33%. In fact, data analytics probably represents the driver of this shift, according to Mercer Marsh Benefits.
Virtual health consultations
This is about delivering the right care at the right time in the right setting, leveraging specialists who can (often virtually) help employees decide which route to take.
78% of insurers around the world are now considering or already supporting virtual health consultations. This is highest in the Middle East and Africa at 88%.
Digital health innovation
Digital technology is being prioritised in the design and delivery of benefits, with insurers moving towards integrated offerings from preventive wellness measures to condition management. The report also states that insurers are increasingly funding “unconventional” methods of care – virtual, home based and machine learning or artificial intelligence.
Added value services
Meanwhile, also in a bid to help individuals make smarter healthcare decisions, insurers are increasingly incorporating added value services into their offerings.
Globally, 63% of insurers indicated they are adopting such approaches: from education sessions and case management to wellness content and programmes.
However, Mercer Marsh Benefits also reports that “a gap still lies in shifting from mass communication to creating engaging, personalised and timely messaging to incentivise behavioural change and alter healthcare buying habits. More needs to be done for employee adoption and sustained engagement of digital health”.
To access the full report, please go to:
https://www.mercer.com/our-thinking/health/mercer-marsh-benefits-medical-trends-survey-2019.html