Global PMI cost increases forecast to be 2.5 x higher than inflation

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Global PMI cost increases forecast to be 2.5 x higher than inflation

The average cost increases for employer-sponsored private medical insurance plans globally will be 9.1 percent in 2016 - higher than the global average projected inflation rate of 3.6%, according to Aon Hewitt.

Both Latin America and the Middle East are expected to see double-digit average medical trend rates in 2016.

Meanwhile while Europe and North America will experience trend rates just below 6%.

Wil Gaitan, senior vice president and global consulting actuary at Aon Hewitt said: "We expect medical costs to continue to escalate around the world due to global population aging, overall declining health, poor lifestyle habits particularly in emerging countries, continued cost shifting from social programs and an increase in utilization of employer-sponsored health plans.

"Regardless of the underlying medical insurance system, employers around the world are continuing to experience added organizational cost and lost workforce productivity as a result of these factors."

Aon Hewitt's report also found that cardiovascular issues, cancer and gastrointestinal issues were the most prevalent onditions driving claims. 

The risk factors expected to drive future claims were mainly non-communicable diseases: high blood pressure, obesity and high cholesterol, followed by physical inactivity.

Francois Choquette, global benefits practice leader at Aon Hewitt said: "Many of the factors driving global cost increases are directly linked to modern lifestyles and their incidence can be significantly reduced if individuals modify their behaviour.

"Employers in every country need to accelerate their efforts at helping employees both understand their own health risks and motivate them to take steps to improve their health."

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