Furthermore, ancillary spend is expected to continue at maintained rates, and while public sector costs for certain surgeries have reduced due to the delay of these treatments, they’ve been replaced by COVID-19 expenditures.
“There is still a significant amount of uncertainty regarding COVID-19’s impact on deferred treatments and long-term health care,” said Tim Nimmer, Aon’s chief global actuary for Health Solutions. “While countries navigate through different outbreak phases, the expectation is that medical plan utilisation will return to normal levels during 2021 as medical services begin to reopen to the market.”
Looking globally, projected medical trend rates vary significantly by region. Costs are expected to increase the most in the Middle East/Africa regions, with average medical trend rates forecasted at 12 percent. In contrast, Europe is projected to see an average medical trend rate increase of 5.5 percent.
The survey was conducted among 107 countries that broker, administer, or otherwise advise on employer-sponsored medical plans in each of the countries covered in this report.