Global medical costs hit historic high of 10.7% in 2023
Around 58% of global insurers expect for the trend to rise for the next three years.
The cost of global medical care has reached 10.7% in 2023, a historic high as the rate climbed to double digits for the first time.
In a survey by multinational company WTW, costs surged from 7.4% in 2022, but the market will experience an improvement over long-term challenges and will decrease globally by 9.3% in 2024.
Factors like the rise in elective procedures, delays caused by the pandemic, and global inflation have led to the rise in healthcare costs. However, the latter will still continue by the next fiscal year.
Arising medical technologies are also seen as a factor in the medical trend. But in several regions, geopolitical tensions, displaced populations, and increased protections for medical providers impacted medical costs.
Whilst a decline is expected, several regions vary, with Europe, Middle East and Africa experiencing increased healthcare costs, indicating a need for long-term improvement in the sector to circumvent rising medical costs, which will see a continuous rise.
More than half of insurers globally (58%) expect a higher medical trend for the next three years, with 59% of those in the APAC region anticipating the rise.
The general consensus shows that optimisation of data, research and resources can solve increasing healthcare costs and access to all patients.