Asia health insurance costs to rise 10% in 2011

Asia health insurance costs to rise 10% in २०११

Chennai: The cost of employer-provided health insurance is likely to increase by more than 10% in Asia Pacific in 2011, according to a survey of health insurers conducted by Towers Watson, a global professional services company. Little relief is in sight with the vast majority of respondents expecting higher medical costs over the next five years.

The Towers Watson global medical trends survey, which includes responses from 170 medical insurers in 37 countries throughout Asia, Africa, Europe and the Americas, finds that globally, the average medical cost trend in 2011 is expected to be 10.5% and 10.2% in Asia Pacific. Virtually all respondents (95%) show a medical trend that exceeds the rate of general inflation.

The survey also points out that while the economic recovery has somewhat slowed, there is sharp uptick in medical trends from the past couple of years. Nearly three of four respondents (72%) expect costs to rise...over the next five years. The most significant factors driving medical cost increases are new medical technology and the overuse of care, which is cited by 65% and 56% of respondents, respectively.

"The growing demand for private healthcare, particularly in developing nations, has placed enormous upward pressure on the cost of providing this valuable employee benefit," says Andrew Heard, managing director, Asia Pacific Benefits."With double-digit medical increases now the norm, employers and insurers will need to carefully monitor costs and begin to look at various cost management techniques and programmes designed to help contain rising costs."

The survey notes that interest in wellness programme is growing both in Asia Pacific and the rest of the world, with most respondents adding some form of wellness feature to their health care offerings. Globally, nearly three of four respondents (72%) offer employees lifestyle and health education programs while 63% offer personal health assessments. emphasis on wellness programmes is good news for both employees and employers, especially those with providers who are now better equipped to offer wellness solutions to help with intervention strategies to management health costs and रिस्क्स,