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healthCare Costs still on the rise
Healthcare costs expected to increase as pandemic wanes
Cost of employer-sponsored medical insurance is on the rise
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Juan A. Hernandez, The Weekly Journal
Healthcare 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 people resuming the use of their health insurance benefits to pre-pandemic levels now that the worst part of the pandemic is over.
More than half of the countries that participated in the survey (60%) reported that the rate of use of medical insurance benefits was lower or significantly less in 2020 and 2021 compared to 2019’s numbers, the year before the pandemic. Nevertheless, Aon contends employer-sponsored medical insurance “will continue to be prevalent, it being the more common and fastest growing financing method (with coverage for new procedures, less exclusions and more flexible inclusion requisites), while most of the main insurers widen their offers to include telemedicine services and/or mental health support.”
But, while Aon expects a “slightly higher trend in medical costs in 2022, when compared to 2021, mainly due to global inflation” in all regions, North America, and Africa and the Middle East would move in the opposite direction, with net reductions in their medical costs of 0.6% and 1.0%, respectively.
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 cost. In Puerto Rico, the situation contrasts significantly with the rest of the region. The island would experience a minimal change of 0.1% reduction in expected medical costs for this year. Similarly, Peru and Colombia both anticipate reductions in their medical costs. This contrasts sharply with Mexico, whose projected increase in medical costs is about 16% higher than in the two previous years. According to the report, this is the result of Mexico’s modified
In fact, health protocols designed to guarantee a safe attention to patients not infected with COVID-19, as well as to the long-The non- term effects of the disease. contagious On the other hand, in Puerto diseases with the Rico, costs will remain the same highest morbidity because of insurance companies in the world are: “working together with medical cancer, muscular/ service providers to keep lower skeletal conditions, costs.” cardiovascular “Insurance companies diseases, diabetes here work closely with service and mental health. providers in keeping costs low by developing limited, or closed service networks, including pharmacies and hospitals,” said Sylvia Ruiz, Client Management Director for Health Solutions at Aon. According to the Aon executive, hospitals 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
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.”
The Mustang Mach-E is Ford’s first all-electric crossover and has a range of up to 300 miles.
Ford to launch several EV models this year
But is not ready yet to ditch internal combustion vehicles
Héctor L. Vázquez, The Weekly Journal
Looking at current trends within the automotive industry, especially mobility, electrification and the competitiveness of internal combustion engine, Ford Motor Company anticipates many innovations for the near future.
The Weekly Journal had the opportunity to learn more about the innovations the automaker has been working on from Rosángela Guerra, Ford’s new director for Puerto Rico, Central America and the Caribbean, and ask her what can be expected for the coming years.
Taking into consideration that when people think of American cars, Ford is in the top of their mind, it’s understandable the expectation surrounding the company’s belated announcement for the industry’s transition into electric vehicles.
Guerra anticipated that the coming transformation will be “fascinating.”
“The company has just created two separate internal structures. One is going to be dedicated exclusively to electric cars and the other is going to handle everything related to internal combustion engines,” she said.
“We believe that an important change towards electrification will take place by 2026 because at that point the price of batteries –which is 60% the price of a vehicle– is going to become more affordable. The company has just announced a $50 billion [investment] to develop electric vehicles, and we expect that by 2030, 50% of our sales will be from electric vehicles, which would represent approximately 2 million cars,” Guerra said.
The Ford executive anticipated that by the end of this year’s third quarter, Ford will launch the electric version of Ford’s iconic Mustang, the Mach-E, in Puerto Rico. The new Mustang is a sports utility vehicle (SUV) built around a 480 hp electric engine in its GT model.
Also arriving later this year will be the F150 Lightning, an electric pickup. The Lightning was launched last week in the U.S. The electric version of the Transit minivan is also scheduled to arrive in the near future.
On the subject of recharging, Ford has car chargers available for its customers in its nine dealerships throughout the island and as they bring more electric vehicles, the number of available chargers will increase.
On the other hand, Guerra said the most sought after Ford model by consumers in Puerto Rico is the F150 pick-up. “Our sales on the island confirm that the most sought after [model] is, undoubtedly, the F150 and
I love it seeing them on the roads. Seeing so many Ford trucks gives me a thrill because it’s a vehicle that I love,” said Guerra, adding that last year 3,048 F-150s were sold in Puerto Rico. By the end of March this year Ford had already sold 830 units of this model. Ford recently launched the Maverick, a smaller pick-up. For We believe that an important the first quarter of the year, the Maverick sold change towards electrification 350 units. Meanwhile, the Raptor edition of will take place by 2026, because the newly redesigned at that point the price of Bronco is also expected to arrive by batteries is going to become more affordable. the end of the year. Guerra said that since her appointment Rosángela Guerra as regional director she Regional Director, Ford Motor Company has visited the island on several occasions, and she loves touring the streets of the island in a Bronco, which is one of her favorite models. “In the last few months I have been to Puerto Rico three times, and well, I’m delighted to be here on the island because the truth is this is a privileged and divine place” she said. Guerra added that she even enjoyed a little “chinchorreo” on the eastern side of the island, which she described as “a pleasant adventure” driving the legendary SUV, which she considers ideal for the experience. The tour included Fajardo, El Yunque and the mandatory stop at the kiosks on Luquillo Beach.
