2011 Global Medical Trends Survey Report

While public health care benefits continue to be scaled back in many markets, employer-sponsored health plans have grown exponentially. As the demand for these benefits has grown, so has the cost of providing them — our survey found that the cost has risen rapidly since 2006 in nearly all markets, and trends for 2011 are projected to be even higher than last year. The rise in medical costs is rapidly becoming one of the greatest financial challenges for multinational companies.

Key findings of the survey include the following:

• Many countries experienced double-digit trends and, in the vast majority (95%), the trend exceeded the rates of general inflation.
• The rate of medical trend growth has slowed in emerging markets, while more developed markets are seeing higher rates compared to five years ago.
• Nearly three-quarters (72%) of survey respondents expect higher medical costs over the next five years.
• The average gross medical cost trend for 2009 was 10.2% (6.9% net of general inflation), and is expected to average 10.5% in 2011. The largest average medical trends for 2011 are projected by respondents in Latin America (13.7%) and North America (11.6%). Only European insurers expect a single-digit average medical trend (9.1%).
• The prevalence of wellness offerings as a major focus for employers and insurers is growing across all regions.

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