• The 2022 Medical Trend Rate for Asia Pacific is up slightly compared to last year’s 8.0 percent and remains above general price inflation
• In the past year, utilisation of outpatient services dropped the most in Asia Pacific due to COVID-19 pandemic-related movement restrictions
• Global health benefit costs to rise 7.4 percent as medical utilisation returns to pre-COVID-19 pandemic levels

SINGAPORE – Media OutReach – 25 October 2021 – Employer-provided medical benefit costs in Asia Pacific are forecasted to rise 8.2 percent in 2022, outpacing general inflation by 5.8 percent, according to the 2022 Global Medical Trend Rates Report recently released by Aon plc (NYSE: AON), a leading global professional services firm.  

The utilisation of medical plans has recovered from a low in April 2020 and is expected to exceed pre-COVID-19 pandemic levels during 2022 as pandemic-related movement restrictions are further eased. This, combined with rising inflationary pressures and an expectation that more of the cost of COVID-19 healthcare will transition to the private sector, is increasing cost expectations.

Tim Dwyer, Head of Health Solutions, Asia Pacific, Aon said, “The pandemic caused overall lower utilisation levels in 2020, which provided plan sponsors with some respite. However, the dual effect of higher expected utilisation and inflationary pressures presents new cost challenges that need to be managed. The normalisation in utilisation patterns, emerging risks such as mental and musculoskeletal health and the potential for a greater COVID-19 cost burden to fall on the private sector will require employers to carefully analyse their medical plans as cost pressures increase over the next two renewal cycles.”

According to the report, over the last year there has been a significant increase in musculoskeletal conditions likely brought about by increased work-from-home arrangements. Furthermore, medication-related expenses have experienced some of the largest inflationary increases. However, outpatient upper respiratory tract infection claims were significantly lower than previous years, but these are expected to recover during 2022 as social distancing and movement restrictions are lifted.

“The good news is that there are plan design and behavioural interventions available to mitigate the cost increases. The route will be uncertain and will vary by country, so it is important that companies use data and insights to make better informed decisions to secure commercial protections at their renewals to deal with the volatility,” Dwyer added.

Globally, costs for employer-sponsored medical plans in 2022 are forecasted to increase 7.4 percent, though projected medical trend rates vary significantly by region. Costs are expected to increase the most in the Middle East & Africa, with average medical trend rates forecasted at 11.1 percent. In contrast, Europe is projected to see the lowest average medical premium rate increase, at 5.6 percent.

Forecasted Health Care Benefit Cost Growth from 2021 to 2022

Forecasted Health Care Benefit Cost Growth from 2021 to 2022 for Select Countries in Asia Pacific

Aon’s report confirms the increasing impact of non-communicable diseases on health care costs globally. In Asia Pacific, Cardiovascular disease, Cancer/Tumor Growth, ENT/Lung Disorder/Respiratory, Diabetes and Musculoskeletal/Back were the most prevalent health conditions driving health care claims.

Leading Medical Conditions in Asia Pacific and the World Driving Medical Claims Experience

The report also confirms the growing prevalence of modifiable risk factors from unhealthy personal habits in Asia Pacific, such as High Blood Pressure, Physical Inactivity, Poor Stress Management, High Cholesterol and Ageing, which directly contribute to the emergence of non-communicable disease.

Leading Health Risk Factors in Asia Pacific and the World

“Insurers have responded to emerging needs created by the pandemic by delivering virtual consultations, prescription delivery and support for employee physical and mental wellbeing. While these services are likely to introduce short-term cost pressures, they should – over time – have a controlling effect on medical trend rates,” said Alan Oates, Principal and Actuary, Asia Pacific, Health Solutions at Aon. “As we emerge from the pandemic, employee wellbeing is now, more than ever, critical to controlling costs and boosting organisational productivity, to build a more resilient workforce. Careful analysis of medical claims and population risk factors can target interventions that modify behaviours to reduce the incidence of non-communicable disease. Employers, both large and small, can take immediate action in this area.”

To view the report, visit https://insights-north-america.aon.com/research/2021-global-medical-trend-rates-report.

Methodology

The survey was conducted among 108 Aon offices, each one representative of a country that broker, administer or otherwise advise on employer-sponsored medical plans. The survey responses reflect the medical trend expectations of the Aon professionals based on their interactions with clients and insurance carriers represented in each country.

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.

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HONG KONG SAR – Media OutReach – 25 October 2021 – Nowadays, many uniforms are still very traditional, which are visually unattractive and outdated. ‘Flint Ideas’- a shirt-printing & uniform customization Company, understands that visually unappealing uniforms could affect the mentality of many workers, thereby reducing work efficiency and service quality.

In this regard, the local creative uniform company- Flint Ideas, with the motto of ‘More than just a Uniform’, is committed to creating uniform fashion lines that bring out strong brand images. The company has launched the service of uniform fashion design, to create uniforms that are fashionable and visually appealing. The visual of the uniform is very important to many businesses since the appropriate uniform fashion helps to create a strong brand image, which would then enhance work confidence and efficiency.

Nowadays, Uniform Fashion has increasingly attracted more attention in Western countries. In addition, the green uniforms of the characters in the popular Korean drama ‘Squid Game’, have become the highlight of many discussions. The Uniform & shirt wear fashion design team of Flint Ideas has taken inspiration from the fashion design of the popular drama, to promote the concept of visually attractive and comfortable uniform and t-shirt wear fashion.

About “Flint Ideas”

“Flint Ideas” is one of the most professional uniform and t-shirt printing companies in Hong Kong. The company has a team of dedicated and passionate staff from various departments, such as the sales department, design department, purchasing department, and production department. With excellent management, the company provides high-quality uniform design services for each of their customers, with a wide range of products that range from team shirts, pant shirts, team jackets, wind jackets, sweatshirts, printed t-shirts, and uniforms.

“Flint Ideas” has its factories of modern production lines and technical equipment in Dongguan and Huizhou in China. The quality of their products has always fulfilled each requirement of their customers, given that the production of their shirts, team shirts, and uniforms, has undergone strict quality control procedures. “Flint Ideas” has always insisted on exquisite craftsmanship, affordable prices, and professional services. Therefore, the company has gained the trust and support of its customers, thanks to the good reputation from various schools, uniform teams, and many commercial organizations.

#FlintIdeas