Healthcare Analytics The Power of Data
Michael Hilton Chief Actuary, Health & Benefits (APAC) Doug Gibbons, Principal – Global Benefits
Breakout 2:
Global healthcare spending estimated as USD8.7 trillion equivalent to 12% of global GDP
Global healthcare inflation grew at 8.8% in 2015 equivalent to 5.5% higher than global price inflation
For 2016, healthcare inflation globally expected to be 9.1% which is 5.6% higher than global price inflation
At these inflation rates the nominal costs of healthcare doubling every 10 years
Rising costs being driven by:
– Rapidly ageing population – The rise of chronic lifestyle disorders – Overuse of medical services – Expensive treatment advances
The global healthcare crisis in numbers
30 year increase in percentage aged 60 years or over
Source: World Health Organization
150m Diabetes
sufferers in India and China
17% Of US GDP is in the healthcare
industry
7.5m Deaths due to tobacco which is 10% of all
deaths
580m People
worldwide over the age of 65
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Your employee benefit program
Total Premiums
Paid
Insurer’s Profit
Admin Costs
Marketing Costs
Risk Charge
Claims Paid
4
Your employee benefit program
Total Premiums
Paid
Claims Paid
Provide masses of dirty data !
Risk & cost transfer !
Cut employee benefits ! Arbitrary funding of wellness programs ! Siloed approach to Finance & HR issues !
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Call to action – every employer needs a targeted strategy
Lifestyle factors are the key lever that employers and individuals can
influence to impact medical costs
A range of mitigating strategies exist to
tackle rising healthcare costs
Healthcare inflation will remain high and above price inflation well into the future
Global companies are waking up to this
situation at the highest levels of
management
An increasing burden of healthcare
provision will fall to the private sector in
most countries
Proposed Actions
Companies should consider some or all of the following; Review the design of programs for optimization opportunities and the ability to share costs
with employees Work with consultants and carriers to get a better understanding of specific claims
patterns and underlying issues Design a program of initiatives aimed at tackling the specific risk factors of your programs
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