Global Health Cost Trends for 2023
Asinta and Alliant’s Global Benefits and Clinical Informatics teams recently compiled a report detailing global health cost trends for 2023. This 30-page report covers medical trends in 53 countries and outlines Alliant’s step-by-step approach to addressing factors such as inflation and unexpected currency fluctuations.
The anticipated medical inflation in most countries is likely to double in 2023 compared to past years, often to more than 15%. As these increases do not include the impact of experience analysis, the premium charged can often be much higher.
Asinta’s Executive Director, Jim Kinney, says, “This high inflationary environment is expected to continue well into 2023. While general inflation may cool slightly come the new year, medical trend typically lags six to 12 months behind general inflation due to the contract-locked nature of premium changes. Therefore, the largest impact to benefits spend is expected to hit in 2023.”
Kinney adds that the information in 2023’s report is designed to support organizations in understanding the expected ‘baseline’ increase to medical premiums. In times of high international inflation and uncertain global economic conditions, Asinta can see that this information is more important than ever.
An excerpt from the 2023 global health cost trends report
If we were only talking about runaway general inflation, then we would be dealing with an event that is likely to subside in the near future. However, we are also experiencing the perfect storm of other factors that are amplifying the impact and are expected to increase medical costs substantially.
- Unexpected currency fluctuations that impact the cost of importing medical goods and services
- Increase in severity of mental health and lifestyle-related claims due to the prolonged nature of the Covid-19 pandemic and subsequent economic downturn
- Increased competition for talent and retention due to the tight labor market
- Secondary pandemic in the form of Monkeypox
- The conflict between Russia and Ukraine
To navigate these turbulent waters, multinational employers need a trusted guide like the Asinta Partnership to help mitigate current cost increases and the long-run impact of claims drivers impacting employees’ health. We at Asinta are happy and able to help you achieve these goals. Contact us today.