DUBLIN, November 23, 2020 – Willis Towers Watson is expecting health insurance prices in Ireland to increase by 5 to 7% in 2021. This follows an average price increase of 5% in 2020 in Ireland.
Globally, health care benefit costs are expected to increase by more than 8% in 2021 according to the Willis Towers Watson 2021 Global Medical Trends Survey.
In 2019 health care benefit costs increased by 4.5% in Ireland, in line with broader international trends due to the increasing costs of treatment, ageing populations, and advancements in medical technology. The need for increased numbers of medical staff, new procedures and PPE costs due to the COVID-19 pandemic have contributed to the rise in cost in 2020 and will contribute to further increased costs for employers in Ireland in 2021.
The Global Medical Trends study also found that globally, over two-thirds (67%) of respondents expect medical costs will continue to accelerate over the next three years. Almost 90% of Middle East and Africa insurers expect higher medical trends over the next three years followed by insurers in Europe (77%). Only 40% of Asia Pacific insurers expect a higher medical trend.
David Glennon, Director Health & Benefits at Willis Towers Watson commented; “Globally we are seeing an increase in medical costs that are reflected here in Ireland. The COVID-19 pandemic has had an unprecedented impact on healthcare and other employee benefits, and how employers fundamentally meet the needs of their people.
“This meant that while the price of health insurance plans increased by an average of 5%, actual health insurance costs fell by approximately 10% because of this rebate.”
David Glennon
Director Health & Benefits - Ireland
“With regard to costs in Ireland, in 2020 the Government took over private hospitals for a period of 3 months in response to the Covid19 pandemic leading health insurers to give a rebate or offset future premiums as customers could not access private hospitals during this time. This meant that while the price of health insurance plans increased by an average of 5%, actual health insurance costs fell by approximately 10% because of this rebate. Therefore, as we look to 2021, while we are expecting more price increases for employers, it is difficult to fully predict given we do not know if the Government will repeat this takeover of private hospitals again in response to possible pressure on the public health system.
“A key consideration for employers all over Ireland, is how they will balance these increased health care costs with the welfare of their workforce.”
David Glennon
Director Health & Benefits - Ireland
“While there may be a degree of uncertainty, it is important to note that the overall trends are not just determined by cost. Utilisation is a key factor in determining any increase or decrease in cost, and we anticipate an increase in medical procedures that might have been delayed or may now be required as result of the pandemic, thus impacting the overall cost to employers. A key consideration for employers all over Ireland, is how they will balance these increased health care costs with the welfare of their workforce.”
The Willis Towers Watson 2021 Global Medical Trends Survey was conducted between July and September 2020 and reflects responses from 287 leading medical insurers operating in 76 countries.
Global medical trends: Health care benefit cost growth (2019 – 2021)
| 2019 | 2020 | 2021 projected | |
|---|---|---|---|
| Global+ | 7.2% | 5.9% | 8.1% |
| North America | 5.6% | 2.8% | 7.1% |
| Latin America+ | 10.8% | 9.0% | 13.6% |
| Asia Pacific | 7.5% | 6.2% | 8.5% |
| Europe | 5.6% | 4.2% | 5.8% |
| Middle East/Africa | 8.6% | 8.7% | 10.0% |
