Integrated health and wellbeing strategies based on stronger digital and data capabilities will be a critical factor in managing the rising costs of health benefit programmes, according to a report by Marsh’s employee benefits business.
According to Mercer Marsh Benefits’ 2018 ‘Medical Trends Around the World’, medical costs of private plans in most major economies are increasing at nearly three times inflation.
The survey, which involved 225 insurers across 62 countries, notes that employers have not responded effectively to mental health being cited as the third highest risk factor, with 40 percent of insurers indicating employer medical plans provide no access to personal counseling.
A whole system approach to wellbeing, which recognises mental health alongside physical health as key to helping employees fulfill their potential, is encouraged for employers.
Additionally, employees need to invest in digital and data capabilities, with one in six insurers currently providing no digital claim capability today.
John Deegan, senior partner at Mercer Marsh Benefits said employers are increasingly questioning the intent and design of healthcare programmes as costs become more material.
He explained: “Given the digital health revolution underway, we are seeing progressive employers redefine health and benefit principles and question traditional medical insurance designs, many of which were based on receiving crisis treatment in a hospital setting.”
Andrew Perry, managing director of Mercer Marsh Benefits, commented: “Health insurance is set for significant changes that will benefit clients.”
He added: “The Medical Trends Around the World research validates our thinking that there is a race within the insurer community to collect and use patient data more effectively.”
“If progress is made in this area, it will help companies better address the needs of their employees and achieve the larger goal of a more affordable, quality-focused healthcare system for all.”
