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CCH® BENEFITS — 07/20/12

Global Medical Trend Projected To Rise 9.6 Percent In 2012

from Spencer’s Benefits Reports: Health insurers project that the global medical trend will rise 9.6 percent in 2012, approximately the same as the 9.8 percent increase reported in 2011, according to research from Towers Watson. The survey, 2012 Global Medical Trends, found that while some countries are seeing rates stabilize, individuals in the Asia Pacific and Latin America regions continue to face increases above 10 percent. However, the survey found that only European respondents expect a single-digit increase in 2012 (8.1 percent).

Towers Watson found that the most popular methods of medical cost management remain contracted provider networks (57 percent) and preapproval for inpatient services (57 percent). When it comes to cost sharing, the use of coinsurance has increased for employers, with 55 percent of all insurers reporting the use of coinsurance as typical or very typical, compared to 41 percent in 2011. In addition, the survey found that premium cost sharing with employees has become more common globally, with a prevalence of 28 percent, compared to 16 percent in 2011.

According to Towers Watson, insurers have increased the use of some less traditional methods of cost control, such as wellness programs. For instance, wellness programs are used by 29 percent of survey respondents. However, many employers struggle to find vendors that can provide wellness services on a global or regional basis, the survey noted. Health risk assessments and chronic condition/disease management programs are also becoming more commonplace, with more than 50 percent of respondents now offering these programs. Insurers based in North America or Europe are more likely to offer a wide range of wellness features than those in Asia Pacific or Latin America.

The survey included responses from 237 health insurers in 48 countries. For more information, visit http://www.towerswatson.com.

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