Canadian insurers anticipate a six per cent increase in medical spending before the end of 2016 after experiencing a 6.3 per cent increase last year, according to a new study by Mercer.
The figures account for changes in utilization patterns, government regulation and medical inflation, though the insurers estimated general inflation was 1.1 per cent in 2015 and will be 1.3 per cent this year.
Mercer’s annual report into medical trends around the world found insurers globally saw a 9.9 per cent increase last year and expect a 9.8 increase this year, with inflation at 3.9 per cent and 3.5 per cent respectively.
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The survey also found that globally, gastrointestinal problems had edged out cancer as the third most expensive health concerns, after respiratory and circulatory conditions. The reduced frequency of cancer claims can be attributed to carriers’ treatment arrangements with health vendors, the survey noted.
Cardiovascular conditions, on the other hand, are on the rise, and employers can expect to see lowered productivity.
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Survey respondents projected non-communicable diseases such as cancer, heart disease, mental illness and diabetes will be the leading cause of increasing health-care costs over the next three years.
According to the survey, this is due to regulations that shift health-care costs on private insurers, older workers needing more expensive technologies and employers offering more comprehensive benefits packages to attract top talent.
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