WASHINGTON, Feb. 6 /PRNewswire-FirstCall/ -- Medical cost increases for employers throughout the world are expected to accelerate over the next five years, according to a poll of insurance companies conducted by Watson Wyatt Worldwide, a leading global consulting firm. The poll also found that, in a vast majority of countries, medical cost increases are outpacing the general rate of inflation.
Nearly three-fourths (71 percent) of respondents expect higher or significantly higher medical cost trends over the next five years. Additionally, more than eight of 10 (81 percent) report that medical costs are eclipsing the general rate of inflation in their country. The results are based on a Watson Wyatt survey of 85 insurance companies that provide medical insurance to employers throughout Asia, Africa, Europe and the Americas.
"Rising medical costs have rapidly become a global issue that reaches far beyond the United States and other developed economies," said Francis Coleman, a senior international health care benefits consultant with Watson Wyatt. "Many of the factors causing U.S. employers to experience significant increases in their health care costs -- such as increased utilization, expensive medical technology and an aging population -- are having comparable effects throughout the world."
Insurance companies in Asia and Africa are expecting double-digit
increases in employer medical costs in 2008, with the exception of
companies in Hong Kong and Singapore, according to the poll. The same is
true in Latin America, except for Brazil and Chile, where costs are
expected to increase by around 7 percent. In Europe, most insurers - except
those in Italy - are projecting increases in the single digits, although
respondents in all European countries said they expect higher trends over
the next five years.
Medical Cost Trends Continue to Increase Globally
2006 2007 2008
|SOURCE Watson Wyatt Worldwide|
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