Company costs surge as staff healthcare costs rise globally

The cost of providing medical care to staff continues to vastly outpace inflation in 29 major economies, according to new research by Mercer Marsh Benefits. In 2014, the average per person increase in healthcare costs in 21 out of 29 countries was more than double the rate of inflation. In 2014, medical costs increased by 10% and are expected to rise by 10.5% in 2015.

While globally, cancer and cardiovascular disease remain the high cost items, in Asia in particular, the reason for high costs is varied. Rose Kwan, Mercer Marsh Benefits explained, “There are a number of factors driving costs in Asia including stress and the double burden of chronic and infectious disease.  Employers are trying to manage these while responding to a challenging war for talent and deal with coverage gaps (e.g. prevention and primary care). The latter is becoming more pronounced as employee expectations on company benefits grow.”

The report found that access to healthcare for the most common physical healthcare needs is largely in place. However, it found that other areas—such as counseling and treatment for mental health conditions—are less consistently addressed. Employers were expanding coverage in areas of women’s health but there was limited access being extended to LGBT (Lesbian, Gay, Bisexual and Transgender) concerns, for example.