Navigating the Future: Insights from Mercer Marsh Health Trends Report 2024
In 2024, employer health insurance costs in India are poised to surge by 11%, surpassing the 2023 projection of 9.6%, states the Mercer Marsh Health Trends Report. Globally, a parallel trend is anticipated, with an increase to 12.3% in 2024 compared to the forecasted 11.6% in 2023, based on responses from 223 insurers across 58 countries.
Key drivers for cost containment in 2024 include plan enhancements and the delivery of ailment and demography-specific health benefits. The report reveals that 57% of insurers globally foresee employers prioritizing plan improvements over cost-cutting measures that may limit coverage.
The landscape of health systems is undergoing a transformation with the rise of digital healthcare, encompassing tele or video consultations, wearable devices, and remote patient monitoring. Notably, 70% of insurers expect Artificial Intelligence (AI) to play a transformative role in first-line diagnosis and navigation within employer-sponsored healthcare over the next five years.
Leading causes of escalating global claims are non-communicable diseases such as cancer, circulatory system-related issues including hypertension and cardiovascular disease, and respiratory ailments.
Insurers are also focusing on under-represented sections, with 31% considering the addition of diagnosis, learning support, or occupational therapy to support neurodiversity. However, diversity and inclusion gaps persist in India, particularly concerning mental health, women’s health, and individuals with disabilities.
Prawal Kalita, employee benefits leader of Marsh India, emphasises the challenges faced by Indian organisations due to rising premiums. He highlights the need for a balanced approach, combining short-term cost containment with the provision of high-quality benefits to support the evolving workforce’s needs. Embracing outpatient primary healthcare, digital solutions, and flexible benefits programmes can help organisations in India manage rising costs effectively and create accessible and efficient healthcare plans for all.
