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Global insurer survey report

Health Trends 2025

Adapting plans to optimise value

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Health Trends 2025 highlights familiar issues: costly cancer claims, cardiovascular and metabolic health concerns, unmet mental health needs, and rising medical costs. However, significant changes are occurring behind these challenges, and employers and insurers must adapt their responses.

Innovative medical treatments, including for obesity and cancer, will impact insurance claims with higher costs. To ensure affordable healthcare for all, it's vital to explore new plan management options and cost containment approaches. Healthcare provision must also evolve to meet the needs of a diverse workforce.

Learn how to effectively balance evolving health risks with cost containment, while keeping plans affordable.

Top trends shaping employer-sponsored healthcare

Health Trends 2025 is your guide to deepening your dialogue with advisors and insurers. Mercer Marsh Benefits surveyed 225 insurers across 55 countries to learn the top trends impacting health plans, and to consider essential actions employers can take, including more innovative forms of cost containment, embracing effective new treatment regimes, and ensuring that medical coverage meets the needs of the whole workforce, as medical costs and workforce needs continue to rise.

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Medical trend rate - Top three trend influencers by region

More than half of markets are seeing trend rates above 10% in 2024 and 2025. Insurers say 2024 trend is driven by medical inflation, utilisation changes, and changes to treatment mixes. 

Inflation, increased utilisation, and changing treatments are impacting projected 2024 medical trend rates

The "Health Trends 2025" chart illustrates how inflation, increased utilisation, and changing treatments are impacting projected 2024 medical trend rates across global and regions.

How do you expect each of the following trend components will impact your market’s projected 2024 medical trend rate? (Very significant + significant; top three)

Global

  • Medical inflation: Expected to have a significant impact on the projected 2024 medical trend rate. (80%)
  • Utilisation changes due to a higher incidence of health conditions: Expected to have a significant impact. (72%)
  • Changes in treatment mix: Expected to have a significant impact. (64%)

Asia

  • Utilisation changes due to a higher incidence of health conditions: Expected to have a significant impact. (81%)
  • Medical inflation: Expected to have a significant impact on the projected 2024 medical trend rate. (73%)
  • Changes in treatment mix: Expected to have a significant impact. (73%)

Europe

  • Medical inflation: Expected to have a significant impact on the projected 2024 medical trend rate. (88%)
  • Utilisation changes due to a higher incidence of health conditions: Expected to have a significant impact. (76%)
  • Utilisation changes due to change in public system scope, quality, affordability and/or access: Expected to have a significant impact. (68%)

Latin America and the Caribbean

  • Medical inflation: Expected to have a significant impact on the projected 2024 medical trend rate. (82%)
  • Changes in treatment mix: Expected to have a significant impact. (71%)
  • Utilisation changes due to a higher incidence of health conditions: Expected to have a significant impact. (56%)

Middle East and Africa (MEA)

  • Medical inflation: Expected to have a significant impact on the projected 2024 medical trend rate. (79%)
  • Utilisation changes due to a higher incidence of health conditions: Expected to have a significant impact. (62%)
  • Changes in treatment mix: Expected to have a significant impact. (48%)

Use this report to:

  • Get a clear view of the top trends for employer sponsored healthcare for your region and market as you plan for 2025.
  • Learn the three key areas requiring HR professionals’ actions to better prepare for the year ahead.
  • Take action to effectively adapt your health and benefits plans to optimise value for your business and your employees. 

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Three key trends

We identified three themes driving costs and risks in employee health benefits and share how employers can effectively balance meeting employee needs while managing workforce risk.

Top trends driving the future of employer provided healthcare

Managing intensifying risks

While medical conditions driving costs remain consistent, the impact of these health conditions is increasing. Employers should evaluate programs to optimise investment in employee health, considering both cost and the employee experience.

Using new techniques to keep plans affordable

Innovative practices beyond cost control are emerging but are not yet widely adopted by insurers. Employers wanting to contain cost should consider more aggressive approaches around how, when and where care is delivered.

Meeting persistent workforce needs

Medical coverage is limited despite diverse workforce health needs. Inflation can worsen coverage gaps and reduce benefit limits.

82%

of insurers report an increase in cancer treatment claims over the last five years for individuals under 50.

46%

of insurers believe AI for first line diagnosis, imaging and/or navigation will reduce health plan cost within five years.

39%

of workers value AI-powered chat for mental health support, but only 15% of insurers provide it today.

Are you working with insurers to manage evolving health risks, while keeping your plans affordable?

Understanding these trends and their impact are crucial for employers, allowing them to design healthcare plans that meet the needs of your business and your employees.

Download the Health Trends 2025 report

Get an in-depth look at the health trends and strategies that will help you adapt your plans to optimise value amid an evolving healthcare landscape.

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