The costs of employer medical benefits across the world are forecasted to rise 8.0 percent in 2020, outpacing general inflation by 4.9 percent, according to the 2020 Global Medical Trend Rates Report released by Aon. However, in Australia we are seeing a reduction in the Medical Trend rate despite the general inflation outlook with a 3.5% average medical gross rate and a regional medical trend rate of 1.2%.

The anticipated average annual increase for employer-sponsored medical plans is expected to be in line with 2019, with a 0.2 percent increase in 2020, due mainly to the rise of chronic diseases, expanded benefits, and a slight increase anticipated in general inflation. In Australia the medical trend rate remains under the 4% mark. The rate has been able to remain low due to the decrease of cardiovascular diseases, and the steady decline of smoking and alcohol use in Australia.

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“Rising medical costs and the prevalence of chronic conditions continue to be a focus of our clients around the world,” said John Zern, CEO of global Health Solutions at Aon. “Providing our clients with market-leading solutions that enable consumer choice, promote transparency and enable wellbeing in order to drive better financial and colleague outcomes will continue to be a priority for us at Aon in 2020.”

Aon’s survey found projected medical trend rates continue to vary significantly by region. Costs are expected to increase the most in Latin America and Middle East/Africa regions, with average medical premium rates forecasted at 13.1 percent and 12.2 percent, respectively. In contrast, Europe is projected to see an average medical trend rate increase of 5.7 percent, which is a slightly lower than APAC’s medical trend increase of 8.7%.

Aon is pleased to present the results of our 2020 survey of average medical trend rates from countries around the world. The survey was conducted across 105 countries where Aon brokers, administers or otherwise advises on employer-sponsored medical plans.


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