But there are still ways to keep healthcare benefits affordable, employers told
Half of employers across the world will likely reduce their plan coverage amid rising medical claims costs in 2025, according to insurers.
Mercer Marsh Benefits' Health Trends Report surveyed 225 insurers in 55 markets to discover that they are expecting half of employers will "want to reduce plan coverage to manage costs in the coming year."
"Our Health Trends 2025 report findings extend a trend from previous years of insurers expecting plan coverage to reduce on grounds of cost," the report read.
Rising medical trends
The findings come as insurers in nearly all markets project medical claims costs to go up by more than 10% this year and the next, according to the report.
Among the factors that impacted the global projected 2024 medical trend rate include:
"As costs continue to increase, it will be critical for organisations to invest in plan improvements that help them manage costs while delivering healthcare coverage that serves their entire workforce," said Hervé Balzano, Mercer's Health President and Mercer Marsh Benefits' Global Leader, in a statement.
"When employers invest in wellbeing, their employees are healthier and more productive."
Employers also have many options to keep healthcare benefits affordable, according to Amy Laverock, Mercer Marsh Benefits' Global Advisory Leader.
This includes working with vendors on packaged fees and bundled pricing, as well as negotiating alternative funding, such as self-insurance.
"They can also increase accessibility by conducting insurer reviews to make effective use of digital health and healthcare centres of excellence," Laverock said.
