Employer-sponsored benefit costs are expected to rise by 8.1% on average globally for 2022, though increases vary between parts of the world, according to a new analysis from Willis Towers Watson.
The consulting firm estimates that U.S.-based benefits costs are projected to increase by 7.6%, while the highest increases are projected in Latin America, by 14.2%.
In addition, survey respondents expect benefits costs to rise by 10.6% on average in the Middle East and Africa, 7.6% in Asia Pacific and 6.7% in Europe, according to the study. Overall, the increases are on par with those reported in 2021, according to the study, but the variance between regions highlights COVID-19's uneven ongoing impacts.
The virus spiked in different countries at different times throughout 2020 and 2021, creating an "asymmetrical arc" that led to "considerable volatility in healthcare utilization and costs around the world," the researchers said in a release.
RELATED: Willis Towers Watson: Employers expect health costs to rise by 5% in 2022
“COVID-19 has produced the biggest impact to global medical trend variation the industry has seen, and we expect the repercussion and volatility from it to extend into 2022 and beyond,” said Eric McMurray, global head of Health and Benefits at Willis Towers Watson, in a statement.
“Countries and employers are feeling the impact differently. Some have experienced the recovery’s demand for regular medical services in 2021, while others will see it next year or after," McMurray said. "The pandemic, combined with the changing face of work, has had a significant effect on medical trends, delivery of services and the future drivers of medical claims.”
The study also highlights benefits trends insurers are watching globally in the coming year. And top of the list? Telehealth.
The pandemic significantly accelerated use and uptake of telehealth and other virtual care services, and major investments in continuing to enhance those offerings are a key focus according to the survey. More than half of global insurers now cover telehealth across all of their plans and 37% said that adding new telehealth services was the biggest change to their plan portfolios for 2021.
“Telehealth’s momentum will be sustained post-pandemic. In fact, the role of telehealth will continue to evolve not only as a navigation tool to speed access to the right care but also as a means to close gaps in access to care,” said Francis Coleman, managing director at Willis Towers Watson, in a statement.
In addition, more insurers are recognizing the role telehealth can play in containing or lowering healthcare costs, the survey found. Nearly two-thirds (63%) said it's an effective tool in managing costs, moving it up from the fifth most-effective on last year's survey to third.
Seventy-five percent of those surveyed said contracted provider networks for all services is effective at managing costs, and 67% said the same about prior authorization for scheduled inpatient medical services.