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/ Wednesday, May 11, 2022
Healthcare costs expected to increase as pandemic wanes Cost of employer-sponsored medical insurance is on the rise
H
Juan A. Hernandez, The Weekly Journal
ealthcare costs are expected to increase during 2022 as the COVID-19 pandemic diminishes throughout the world and people resume their regular usage of health services. In its latest world survey, Aon, estimates the cost of employer-sponsored medical insurance will increase by 7.4 percent in 2022, when compared to the cost in 2021. According to the business solutions advisory firm, the increase will be due to cost. people resuming the use of their health insurance In Puerto Rico, the situation contrasts benefits to pre-pandemic levels now that the worst significantly with the rest of the region. The island part of the pandemic is over. would experience a minimal change of 0.1% More than half of the countries that participated reduction in expected medical costs for this year. in the survey (60%) reported that the rate of Similarly, Peru and Colombia both anticipate use of medical insurance benefits was lower or reductions in their medical costs. This contrasts significantly less in 2020 and 2021 compared to sharply with Mexico, whose projected increase 2019’s numbers, the year before the pandemic. in medical costs is about 16% higher than in the Nevertheless, Aon contends employer-sponsored two previous years. According to the report, this is medical insurance “will continue the result of Mexico’s modified to be prevalent, it being the health protocols designed to more common and fastest guarantee a safe attention growing financing method (with to patients not infected with coverage for new procedures, COVID-19, as well as to the longless exclusions and more flexible The nonterm effects of the disease. inclusion requisites), while most contagious On the other hand, in Puerto of the main insurers widen their diseases with the Rico, costs will remain the same offers to include telemedicine highest morbidity because of insurance companies services and/or mental health in the world are: “working together with medical support.” cancer, muscular/ service providers to keep lower But, while Aon expects a skeletal conditions, costs.” “slightly higher trend in medical cardiovascular “Insurance companies costs in 2022, when compared diseases, diabetes here work closely with service to 2021, mainly due to global and mental health. providers in keeping costs low inflation” in all regions, North by developing limited, or closed America, and Africa and the service networks, including Middle East would move in the pharmacies and hospitals,” said opposite direction, with net Sylvia Ruiz, Client Management Director for Health reductions in their medical costs of 0.6% and 1.0%, Solutions at Aon. respectively. According to the Aon executive, hospitals
In fact,
Puerto Rico And The Latin American Region Latin America and the Caribbean regions fall with the world with a net 1.0% increase in medical
and pharmacies, along with clinical laboratory testing, are among the services with the higher demand and costs among all the regions surveyed. Of all the countries surveyed, 88% reported
Lower costs benefit both employers and employees by guaranteeing better insurance contracts at lower rates for them. Sylvia Ruiz Client Management Director for Health Solutions at Aon
hospitalizations as the most significant element in the cost of insurance, with laboratory testing at 83% and pharmacy (prescribed medication) at 73%. In Puerto Rico, costs are kept low because insurers guarantee providers a specific business volume in exchange for lower costs. “Keeping costs low reduces the [economic] impact on [insurance] premiums, coinsurance and co-pays. Lower costs benefit both employers and employees by guaranteeing better insurance contracts at lower rates for them,” Ruiz added.
Highest Morbidity
As it is expected, diseases with the highest morbidity rates always trigger the highest usage of medical insurance benefits. The non-contagious diseases with the highest morbidity in the world are: cancer (tumor growth), muscular/skeletal conditions, cardiovascular diseases, diabetes and mental health. Despite the record low usage of employersponsored medical insurances in 2020 and 2021 due to the home sheltering ordered by many governments, Aon anticipates healthcare costs will continue to increase at more or less the same rate reported in 2021. Adding to the higher insurance premiums is the aging of the population and its declining health, unhealthy lifestyles and the prevalence of chronic diseases. “Looking to the year ahead, most of the countries expect higher medical [services] usage than those observed at the beginning of the pandemic,” said Max Saraví, Head of Health and Human Capital Solutions at Aon Latin America. “Preventive care and ambulatory services are the medical services expected to experience the highest usage next year. Also, telehealth services are expected to increase in 2022.”
