Dive Brief:
- Insurers are projecting medical costs will increase globally in 2025 — by about 10.4%, according to WTW’s 2025 Global Medical Trends Survey.
- Specifically in the U.S., insurers project a 10.2% increase in 2025, up from 9.3% this year.
- Notably, WTW researchers said that public healthcare systems worldwide have been overwhelmed due to high demand and low resources, which has led to people turning to private providers.
Dive Insight:
In the U.S., in particular, the face of employer-sponsored healthcare continues to shift, especially as GLP-1 coverage remains a hot topic. A Mercer report found that coverage for obesity drugs ticked up 44% among companies employing 500 or more workers, similar to the 41% increase of the year prior.
In addressing a digital audience last month, a healthcare company CEO said the key for HR managers and benefits specialists is to assess value for their specific workforce. This echoes the previous advice of benefits experts, who have noted the importance of data and feedback in the process.
Linda Pham, WTW’s global health and risk leader for Integrated & Global Solutions, said in a statement the “seemingly never-ending rise in costs” creates a constant challenge for employers. To respond, employers will need to balance cost increases with budget expectations, Pham said, and emphasize “data-driven” outcomes for both business and health outcomes.
Some of the factors that are affecting healthcare costs may be out of employers’ control, Courtney Stubblefield, WTW’s managing director of Health & Benefits, said in a statement. Still, Stubblefield said, “Employers can explore initiatives that may help control costs while boosting the value of their health benefits.” This looks like weighing all the options for vendors, including telehealth solutions.