TORONTO, Oct. 12, 2021 /CNW/ -- Employer-provided
medical benefit costs in Canada
are forecasted to rise 7.0 percent in 2022, outpacing general
inflation by 5.0 percent, according to the 2022 Global Medical
Trend Rates Report released today by Aon plc (NYSE: AON),
a leading global professional services firm.
The increase for Canadian employer-sponsored medical plan costs
expected next year is due to a combination of higher costs for
prescription drugs (including biologic immunomodulators), dental
care and paramedical expenses.
"We continue to see a moderate decline in the expected health
and dental claims activity in 2021 as a result of COVID-19, said
Joey Raheb, Senior Vice President
and National Leader Growth & Client Engagement, Health
Solutions, Aon. With the assumption that no major subsequent
lockdowns will occur, comfort level of members in seeing
practitioners returns to normal and medical/dental office safety
guidelines becoming more efficient, we expect utilization to return
to pre-pandemic levels by the end of 2021 or beginning of 2022.
Therefore, we anticipate for 2022 a Medical Trend rate at a 7%
level, like the anticipated trend reported in the prior year."
Globally, costs for employer-sponsored medical plans in 2022 are
forecasted to increase 7.4 percent. This is mainly due to medical
utilization returning to pre-pandemic levels, expanded benefits,
higher unit costs for medical services and an increase anticipated
in general inflation.
Projected medical trend rates vary significantly by region.
Costs are expected to increase the most in Middle East/Africa regions, with average medical trend
rates forecasted at 11.1 percent. In contrast, Europe is projected to see an average medical
premium rate increase of 5.6 percent.
Forecasted Health Care Benefit Cost Growth from 2021 to
2022
|
|
2021
|
2022
|
Canada
|
|
7.0%
|
7.0%
|
Global
|
|
7.2%
|
7.4%
|
North
America
|
|
7.0%
|
6.6%
|
Latin America and
Caribbean
|
|
8.8%
|
10.6%
|
Asia
Pacific
|
|
8.0%
|
8.2%
|
Europe
|
|
5.5%
|
5.6%
|
Middle
East/Africa
|
|
12.0%
|
11.1%
|
Alongside the global pandemic, Aon's report confirms the
increasing impact of non-communicable diseases on health care costs
globally. In Canada autoimmune
disease, cancer, cardiovascular, mental health and diabetes were
the most prevalent health conditions driving health care
claims.
Leading Medical Conditions in Canada and the World
|
|
|
|
Canada
|
Global
|
1)
|
Autoimmune
disease
|
Cardiovascular
|
2)
|
Cancer
|
Cancer
|
3)
|
Cardiovascular
|
High blood
pressure
|
4)
|
Mental
Health
|
Diabetes
|
5)
|
Diabetes
|
Lung disorder
respiratory
|
Aon's report also confirms the growing prevalence of risk
factors from unhealthy personal habits in Canada, such as poor stress management, lack
of health screening, physical inactivity, bad nutrition and
ageing.
Leading Health Risk Factors in Canada and the World
|
Canada
|
Global
|
1)
|
Poor stress
management
|
High blood
pressure
|
2)
|
Lack of health
screening
|
Physical
inactivity
|
3)
|
Physical
inactivity
|
Poor stress
management
|
4)
|
Bad
nutrition
|
Bad
nutrition
|
5)
|
Ageing
|
High
cholesterol
|
|
|
|
"Looking ahead to next year, most countries are expecting
medical utilization levels to be higher than they observed since
the start of the pandemic," said Ed
Cwikla, Aon's chief global actuary for Health Solutions.
"Preventive care and outpatient are the medical services that are
projected to increase in usage the most next year. Utilization of
telehealth services is also expected to increase during 2022,
continuing the strong increase observed during the pandemic."
To view the report, click here.
Methodology
The survey was conducted among 108 Aon offices, each one
representative of a country, that broker, administer, or otherwise
advise on employer-sponsored medical plans in each of the countries
covered in this report. The survey responses reflect the medical
trend expectations of the Aon professionals based on their
interactions with clients and carriers represented in the portfolio
of the firm's medical plan business in each country.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the
better — to protect and enrich the lives of people around the
world. Our colleagues provide our clients in over 120 countries
with advice and solutions that give them the clarity and confidence
to make better decisions to protect and grow their
business.
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Media Contact
Alexandre Daudelin
+1 514 967-9330
SOURCE Aon plc