Insurers expect healthcare benefit costs to rise dramatically in 2023

A new survey found that insurers anticipate a 10% increase in healthcare benefit costs in 2023, the largest increase in about 15 years. Between July and September, Willis Towers Watson received responses from 257 insurers from 55 countries.

The 10% jump is higher than in previous years. Globally, there was an 8.2% increase from 2020 to 2021. Globally, there was an 8.8% increase from 2021 to 2022. 78% of insurers anticipate higher or significantly higher increases in the next three years.

The report found that healthcare benefit costs vary by region. Insurers in Latin America expect a 18.9% increase in 2023. There will be an 11.5% increase in the Middle East, a 10.2% increase in Asia Pacific, an 8.6% increase in Europe, and a 6.5% increase in North America.

Seventy-five percent of insurers blamed rising medical costs on overuse of care. A medical professional may recommend too many services or overprescribe medications. The underuse of preventive services was credited by 50% of respondents, while 52% blamed people’s poor health habits. Covid-19 is largely responsible for the latter, the report said.

According to insurers, cancer, musculoskeletal disorders, and cardiovascular disorders are the most expensive medical conditions. Respondents predicted that mental health would continue to rise, ranking fourth.

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