When we asked insurers: What three risk factors do you think influence employer sponsored group medical costs the most? Globally, as I mentioned earlier, mental health was third with 43 percent. However, in Asia mental health ranked bottom, behind occupational risk (44 percent) and environmental risk (51 percent), with 31 percent.
But this doesn’t mean that mental health benefit programs in Asia should be ignored by companies, even with the increase in medical costs worldwide. According to the 2018 Medical Trends Around the World survey, the global medical cost in 2017 increased at 9.5 percent, almost three times the inflation rate of 3.4 percent. Hong Kong’s increment was below the average global level but higher than the other two developed Asian cities, namely Singapore (8.6 percent) and South Korea (7 percent).
“Hong Kong’s medical costs significantly outpaced the local inflation rate and employer’s cost on health care continues to grow. Therefore, employers should review the existing design of health care plans, further invest in data analytics and adopt a whole system approach in order to effectively manage employee health care cost,” Billy Wong, Mercer’s Health & MPF Business Leader, Hong Kong said.