Singapore Medical Benefit Trend Growth to Drop in 2021: Aon Survey

October, 29/2020 - 03:12
Singapore Medical Benefit Trend Growth to Drop in 2021: Aon Survey

SINGAPORE - Media OutReach - 29 October, 2020 - Aon plc (NYSE: AON), a leading global professional services firm providing a broadrange of risk, retirement and health solutions, today announced that a nationwidedecrease in medical plan utilisations due to the novel coronavirus (COVID-19)pandemic is likely to decrease medical trend rates in Singapore next year. Growthin employer-provided medical benefit costs are expected to drop 30% in 2021compared to the previous year's forecasts made prior to the COVID-19 pandemic, according to Aon's 2021 Global Medical Trend Rates Report.




Health planssaw significantly less utilisation in 2020 as people avoided hospitals in fearof COVID-19 infection and delayed their elective procedures. Thiscommunity-wide decrease in plan utilisation is expected to reduce Singapore's 2021medical trend costs to 7% from the previously projected 10% in 2020. Theexpectation for the new year is that inpatient care will spike back up whereasoutpatient care will return to approximately 70 percent of pre-COVID-19 levels,and eventually normalise.


In Asia Pacific,medical trend costs will drop to 8% in 2021 from the 8.7% projected for 2020. However,projected medical trend rates vary significantly by location in the region.Hong Kong is projected to see the lowest at 5.3% in 2021. This, too, is due toa decrease in elective surgeries and outpatient routines.


In China, themedical trend rate in 2021 is expected to be 7%. COVID-19 has resulted in betterself-protection measures taken by patients, decreasing the incidence ratio ofcommon diagnoses. Additionally, outpatient utilisation has depreciated whileonline consultations have dramatically increased during the pandemic.


ForecastedHealth Care Benefit Cost Growth

Location

2020

2021

China

7.5%

7.0%

Hong Kong

8.1%

5.3%

India

8.5%

9.0%

Indonesia

13.0%

13.0%

Japan

1.5%

0.0%

Malaysia

14.0%

14.0%

Philippines

9.2%

8.0%

Singapore

10.0%

7.0%

South Korea

8.0%

7.5%

Taiwan

8.0%

8.0%

Thailand

13.9%

6.6%

Vietnam

11.0%

8.7%

 

In AsiaPacific, cardiovascular, gastrointestinal, and musculoskeletal diseases,cancer, and ear, nose & throat (ENT) issues are the most prevalent healthconditions driving healthcare claims.


Leading Medical Conditions Driving MedicalPlan Costs

Asia Pacific

1)

Cardiovascular

2)

Cancer/Tumour Growth

3)

Gastrointestinal

4)

Musculoskeletal/Back

5)

ENT/Lung Disorder/Respiratory

 

Aon's reportalso confirms the growing prevalence of health risk factors in Asia Pacific, includinghigh blood pressure, physical inactivity, and bad nutrition, which may drivefuture medical plan costs.


Leading Health Risk Factors Driving FutureMedical Plan Costs

Asia Pacific

1)

High Blood Pressure

2)

Physical Inactivity

3)

Ageing

4)

Bad Nutrition

5)

High Blood Glucose

 

Tim Dwyer, CEOof Health Solutions, Asia Pacific, Aon said, "COVID-19 has underscored the need for betterdesign and management of employee health and benefit programmes. To mitigatemedical costs by reducing chronic conditions, employers in Asia Pacific mustinvest in wellbeing programmes to promote mental health, physical activity,healthy eating, and preventive strategies like physical check-ups andscreenings. This could supplement traditional strategies, such as controllingunreasonable plan utilisation, adjusting plan designs, narrowing networks andadding flexible benefit plans."


To view thereport, visit 2021 GlobalMedical Trends Report.


Methodology

The survey wasconducted among 107 Aon offices, each one representative of a country, thatbroker, administer, or otherwise advise on employer-sponsored medical plans ineach of the countries covered in this report. The survey responses reflect themedical trend expectations of the Aon professionals based on their interactionswith clients and carriers represented in the portfolio of the firm's medicalplan business in each country.

About Aon

Aonplc (NYSE: AON) is a leading global professionalservices firm providing a broad range of risk, retirement and health solutions.Our 50,000 colleagues in 120 countries empower results for clients by usingproprietary data and analytics to deliver insights that reduce volatility andimprove performance.


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