Library: Aon’s report The Global Medical Trend Rates Report 2024

Aon’s report on “The Global Medical Trend Rates Report 2024” provides an overview of the projected medical trend rates for employer-sponsored medical plans across various regions and countries for the year 2024.

Key Points

• The global average medical trend rate for 2024 is expected to be 10.1 percent, up from 9.2 percent in 2023, marking the highest rate since 2015. The regions with the highest projected increases are Latin America and the Caribbean (LAC) at 11.7 percent and the Middle East and Africa (MEA) at 15.1 percent.
• The top medical conditions expected to drive medical plan costs in 2024 remain the same as in 2023, including cancer/tumor growth, cardiovascular diseases, high blood pressure/hypertension, diabetes, musculoskeletal/back pain, ENT/lung disorder/respiratory issues, and mental health conditions.
• Leading employers are implementing strategies to mitigate rising costs, with wellbeing initiatives being the top strategy, followed by cost containment measures, plan design changes, and the use of flexible benefit plans to cap overall benefit costs.
• The report highlights the importance of aligning wellbeing strategies with other corporate initiatives like Diversity, Equity, Inclusion, and Belonging (DEIB) and Environmental, Social, and Governance (ESG) policies, as well as leveraging healthcare analytics and a long-term perspective on healthcare financing.
• The report provides regional and country-specific medical trend rates, with North America experiencing a 7.6 percent increase (the lowest among regions), Asia-Pacific at 9.7 percent, Europe at 10.4 percent, and LAC at 11.7 percent.

Conclusion

As employer-sponsored medical plans become a larger part of total rewards spend, Aon’s report emphasizes the importance of accurately forecasting and managing costs through strategies such as wellbeing initiatives, cost containment measures, and aligning healthcare strategies with corporate initiatives. The report provides valuable insights for organizations to make better decisions regarding their global budgets and benefits strategies for 2024 and beyond.

Link to full report: click here

The TDI editorial team uses AI to support the creation of this summary, but all content is reviewed and edited before publication.