Acording to Beinsure Media, the global average medical trend rate for 2024 to be 10.1%, up from 9.2% in 2024 and the highest rate since 2015. The upsurge in medical trend is driven by a generalized increase expected in all regions, with every global region showing an increase in trend over 2024, according to Beinsure Media Global medical trend rates report.
The trend rate figures represent the percentage increases in medical plan unit costs – insured and self-insured – that are anticipated to be required to address projected price inflation, technology advances in the medical field, plan utilization patterns and cost shifting from social programs.
The findings reflect the medical trend expectations of Aon professionals based on their interactions with clients and carriers represented in the portfolio of the firm’s medical plan business in each location.
The series of shocks affecting economies around the world after the COVID-19 pandemic continue to create an unstable environment for the healthcare market, despite continued signs of improvement. Volatile conditions will persist.
Widespread inflation and increasing healthcare utilization are combining to drive projected increases in global healthcare benefit costs to their highest level in nearly 15 years, according to a survey of global medical insurers conducted by analitics.
Many critical illness insurance plans which are also defined benefit plans also cover various types of cancers. However, a cancer special plan may have the edge here.
While buying a cancer health insurance policy for protection against cancer here are the main factors you should consider. Health insurers can no longer charge more or deny insurance coverage to you or your child because of a pre-existing health condition like asthma, diabetes, or cancer. They cannot limit benefits for that condition either. Once you have insurance, they can’t refuse to cover treatment for your pre-existing condition.
The trend rate figures represent the anticipated percentage increases in medical plan unit costs—both insured and self-insured—needed to address projected price inflation, technological advances, plan utilization patterns, and cost shifting from social programs.
Aon professionals derived these findings based on their interactions with clients and carriers within the firm’s medical plan business. Despite signs of improvement, the global economy remains unstable post-COVID-19, impacting the healthcare market.
Leading conditions driving the trend rate, such as cancer and cardiovascular issues, are linked to risk factors like poor nutrition, air pollution, and excessive substance use. However, physical inactivity and poor stress management remain the top risk factors.
Companies are adopting new cost mitigation strategies for health and wellbeing as medical plan costs rise annually. In 2024, 60% of companies plan to use flexible benefit plans. Local level wellbeing initiatives are also significant mitigation strategies.
Employer-sponsored medical plans increasingly dominate total rewards spending, pressing companies to forecast and manage costs accurately. This report aids organizations in planning global budgets and benefits strategies to build resilient workforces for 2024 and beyond.
Rising health and wellbeing costs challenge companies, often leading to unbudgeted expenses and affordability issues for employers and employees. To mitigate these costs, familiar strategies such as wellbeing initiatives remain key.
These initiatives control costs by encouraging preventative care to avoid expensive treatments and keeping employees engaged in their wellbeing to reduce stress-related health issues. Cost containment measures, like raising deductibles and copays, will play a crucial role in 2024.
Significant plan design changes, such as flexible benefit plans and access restrictions, incentivize cost-effective care and are expected to be prominent in 2024. Flexible benefit plans, identified by 60% of countries as a top initiative, allow employers greater cost control and influence employee behavior.
Countries like Spain, South Africa, and the United States already prioritize flexible benefit plans. These plans not only control costs but also serve as HR tools to attract and retain talent, offer adaptive benefits, and support Diversity, Equity, Inclusion, and Belonging (DEIB) policies.
A cancer care policy addresses medical needs specifically for cancer treatment, while a critical illness plan with cancer coverage includes various chronic conditions and critical illnesses, including cancer.
Cancer plans function through comprehensive standard health insurance plans that cover a wide range of diseases, including cancer. These indemnity plans pay for actual treatment costs within the overall insured sum limit.
Review your comprehensive plan thoroughly to understand its financial protection against cancer.
Many people pay extra monthly premiums for special insurance covering cancer, in addition to their regular health insurance.
However, if you have health insurance, additional cancer insurance may not be necessary, as your current policy likely covers cancer treatment.
The National Cancer Institute estimated the average cost of medical care and drugs at over $42,000 in the year following a cancer diagnosis, with some treatments exceeding $1 million. Most costs are typically covered.
