Asia has the highest projected medical trend rates in 2025 globally
More than half of the markets are seeing trend rates above 10% in 2024 and 2025, with Asia leading at 13%, more than 5 times inflation. This is largely driven by higher utilisation changes, medical inflation and treatment changes.
Health Trends 2025 highlights familiar issues: costly cancer claims, unmet mental and reproductive health needs, and rising medical costs. However, significant changes are occurring behind these challenges, and employers and insurers must adapt their responses.
To guide employers managing health and benefits plans, Mercer Marsh Benefits surveyed 225 insurers across 55 countries, including 77 insurers from Asia, to learn the top trends impacting health plans, and identified essential actions employers can take to balance rising healthcare costs and employees’ diverse needs.
Three key trends in Asia revealed
Top three key trends steering costs and risks in employee health benefits:
Manage cancer as an intensifying riskWhile medical conditions driving costs remain consistent, the impact of these is increasing. Employers should evaluate programs to optimise investment in employee health, while balancing both cost and employee experience. |
Deploy new techniques to keep plans affordableInnovative practices beyond cost control are emerging but are not yet widely adopted by insurers. Employers wanting to contain cost should consider more aggressive approaches around how, when and where care is delivered. |
Meet the unique needs of the workforceMedical coverage is limited despite diverse workforce health needs, leading to gaps in what employees value and insurers cover. Inflation can worsen coverage gaps and reduce benefits limits. |
80%of insurers report an increase in cancer treatment claims over the last five years for individuals under 50. Only 26% of insurers in Asia offer preventive screenings by default, compared to 43% globally. |
#1Increasing health and benefits costs is the top risk among HR and risk managers. However, Asia lags in cost management approaches to keep plans affordable.
Only 26% of insurers in Asia have tiered coinsurance structure to help members maximise their coverage while managing benefits costs. |
More than >40%of employees value more support for reproductive healthcare.
Only less than 5% of insurers in Asia provide it by default. |
Keen to know how to manage evolving health risks, while keeping your plans affordable?
Understanding these trends and their impact is crucial to design healthcare plans that meet the needs of your business and your employees.
What are medical trend and medical trend rates?
Medical trend is the year-over-year cost increase for claims under a medical plan on a per-person basis, assuming no changes to the benefits provided. This trend rate is driven by a variety of factors, including medical inflation, changes in utilisation, and changes in treatment mix, among other factors.
What is medical inflation?
Medical inflation refers to the rate at which the cost of medical services and products increases over time.
How different is medical inflation from general inflation?
General inflation refers to the overall increase in prices for goods and services across the economy over time, typically measured by indices such as the Consumer Price Index (CPI). It encompasses a wide range of categories, including food, housing, transportation, education, and more. Medical inflation, on the other hand, is a subset of inflation that specifically relates to the rising costs of healthcare services and products only, such as medical procedures and pharmaceuticals supplies.
Use this report to:
- Deep dive into the three key areas requiring HR actions to plan for the year ahead.
- Get insights on the trends to better strategise employer-sponsored healthcare solutions for your market.
- Adapt your health and benefits plans to optimise value for your business and employees.
Download the Health Trends 2025 report
Get an in-depth look at the health trends and strategies that will help you adapt your plans to optimise value amid an evolving healthcare landscape.
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