Global healthcare benefit cost increases projected to largely continue into 2024, WTW survey finds
- Global medical care benefit cost increases remain high at 9.9% in 2024 after hitting a record high of 10.7% in 2023
- Employers are facing both higher cost increases as well as the potential for significant volatility, making it even more difficult to budget and plan
- The survey found that the leading driver of medical costs continues to be overuse of care due to medical professionals recommending too many services or overprescribing
- Global medical care benefit cost increases remain high at 9.9% in 2024 after hitting a record high of 10.7% in 2023
- The underuse or lack of preventive services is also a significant cost driver
High costs are likely to remain with nearly 3 in 5 insurers expecting larger increases over the next 3 years
ARLINGTON, Va., Nov. 29, 2023 (GLOBE NEWSWIRE) -- Global medical care benefit cost increases, as reported by health insurers, show little to no decline in 2024, one year after hitting a historic double-digit inflation, according to a survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. Adding further emphasis to the continued risk of high medical costs, nearly three-fifths of insurers (
The WTW Global Medical Trends Survey found the cost of medical care globally jumped from
Several factors are contributing to the variations noted above. The spread of COVID-19 in waves during the pandemic produced wide swings in the utilization of acute medical and outpatient care that have largely leveled out or waned. The spike in elective procedures, consultations and other medical care resulting from delayed or postponed care due to the pandemic has eased; however, the severity of some missed diagnoses and care needed now has worsened. In addition, global inflation, which was a significant factor in driving up healthcare costs, has moderated in 2023 and is expected to continue to fall going into 2024.
“While some cost increases are projected to ease in 2024, they remain at significantly high levels,” said Linda Pham, senior director, Integrated & Global Solutions, WTW. “The high cost of new medical technologies is a key reason for the persistently high trend. Furthermore, in some regions, ongoing geopolitical conflicts and resulting displaced populations have negatively affected medical costs due to an increased need for care and reduced availability of providers.”
Global medical trends: Healthcare benefit cost increases, 2022 – 2024
2022 | 2023 | 2024 projected | |
Global+ | |||
North America | |||
Latin America | |||
Asia Pacific | |||
Europe | |||
Middle East/Africa |
*Global and Latin America numbers exclude Argentina and Venezuela
The leading driver of medical costs, according to insurers, continues to be overuse of care (
The addition of wellbeing services (
“Employers are facing both higher cost increases as well as the potential for significant volatility, making it even more difficult to budget and plan. Faced with this environment, inaction is not an option. Employers must understand their risk tolerance, review their current offerings to ensure optimal value and explore strategies to balance cost pressures with the need to support the employee experience. By understanding the factors that affect healthcare and drive costs in their populations, employers can effectively combat the ever-present threat of rising costs,” said Debby Moorman, head of Health & Benefits, North America, WTW.
About the survey
WTW conducted its 2024 Global Medical Trends Survey between June and August 2023. A total of 266 leading insurers representing 66 countries participated in the survey.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.
Media contacts
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eemerman@eaglepr.com
Ileana Feoli: +1 212 309 5504
ileana.feoli@wtwco.com
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