Top health trends 2025, according to Mercer Marsh Benefits
Issues grabbing the headlines in Mercer Marsh Benefits (MMB) latest health trends report include:
- Costly cancer claims
- Widespread cardiovascular and metabolic health concerns
- Unmet mental health needs, and
- Rising costs
In June and July 2024, our survey of 225 insurers in 55 global markets helped us to identify the key healthcare and wellness trends influencing the future of employer-sponsored benefits.
The following trends emerged:
1. Intensifying health risks
A significant 82% of insurers report an increase in cancer treatment claims among individuals under 50 over the past five years.
While the medical conditions causing these costs have remained the same, their impact is intensifying due to rising medical expenses and significant health issues affecting the workforce.
Projected medical trend rates for 2024 and 2025 are stabilising but remain high, with nearly all regions expected to exceed 10%.
Non-communicable diseases continue to be primary drivers of claims cost and frequency.
These include cardiovascular, respiratory, and cancer conditions.
Notably, cancer cases are on the rise among younger workers, and catastrophic claims are pushing many individuals to their lifetime claim limits.
Innovative treatments for conditions like obesity could improve cardiovascular and metabolic health, their high costs often exclude them from standard health care plans.
Employers and insurers must adapt to these evolving health risks.
They also need to maintain affordable plans and ensuring employee access to care.
Public healthcare systems face increasing demands.
And employees may increasingly rely on their employers for support. Employers should:
- Reassess coverage limits
- Consider the financial implications of high-cost claims
- Develop strategies to address emerging cancer risks, and
- Develop strategies to reduce cardiovascular and metabolic health issues.
Strategies should also include mental wellbeing and brain health, alongside physical health.
2. Innovative cost control practices
To manage rising health insurance costs, 61% of insurers typically include pre-authorisation processes to evaluate the necessity of procedures and supply costs.
While 58% offer negotiated packaged or bundled pricing for specific procedures.
Although rising costs may seem inevitable, they can be managed.
Organisations should first gain a comprehensive understanding of their benefit plans.
This should be reviewed at local, national, and international levels.
This understanding allows them to identify concerns and explore innovative cost containment techniques.
For example, pre-authorisation and alternative financing methods like self-insurance.
Digital health technologies can enhance healthcare processes and member treatment, such as providing access to virtual care support.
Employers should investigate how their insurers leverage these technologies and AI to capture healthcare opportunities and manage health risks effectively.
Collaborating with healthcare professionals and healthcare providers can enhance the effectiveness of these initiatives in the wellness space.
3. Narrowly defined medical coverage
Four in ten (39%) of workers expressed interest in AI-powered virtual advice for mental health issues, but only 15% of insurers currently provide this service by default.
There remains a significant gap between the healthcare services covered by insurers and the diverse needs of the workforce.
This situation is worsened by inflation that erodes benefit maximums.
Addressing these gaps is essential for improving employee health.
There is a growing demand for more inclusive healthcare plans that support individuals experiencing menopause, neurodivergent conditions, and family planning.
Employers are shifting benefits spending towards these valued offerings, making it essential to understand unmet workforce needs and health risks.
For instance, employers should evaluate how mental health support costs are allocated, whether this is on a per-session basis or with capped limits.
Developing a comprehensive strategy
Our research highlights the necessity for employers to establish a robust risk mitigation and cost containment strategy.
This strategy should include a governance model that provides visibility into benefits plans and leveraging technology for sustainability.
Engaging in dialogue with stakeholders, such as internal risk and finance teams, advisors, and insurers, will help clarify risk tolerance and available options.
This will allow for support tailored to the workforce and better health outcomes.
Active plan management is crucial to balance coverage adequacy with cost sustainability.
Employers should implement metrics and feedback loops to measure success through a multi-year program.
They should focus on tangible improvements in:
- Employee health
- Productivity
- Absenteeism, and
- Claims costs
Connecting benefits strategy to return on investment metrics will facilitate future investments in employee health initiatives.
For more information, read the full healthcare trends report.
Supplied by REBA Associate Member, Mercer
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