MercerMarshBenefitsGlobal insurer survey reportMMBHealthTrends 2023Navigating costtrendsand usinginnovationin employer-providedhealthcarebenefits that truly benefit Global insurersurvey report.MMBhealthtrends 2023:Navigating costtrends andusing innovation inemployer-providedhealthcareAlthoughCOViD-19continuestoTop trends drivingemployer-providedinfluenceemployer-providedhealthhealthbenefitsplans,bothdirectlyandindirectly,Per-personmedicalcostmedicaltrendacrosstheglobehasincreases areback topre-pandemic levels.largelystabilizedtoapproximatepre-pandemicrates.Meanwhile,COVID-19continuesto impactclaimsmarketinnovationcontinuesexperience.tooffernewopportunitiesfor3Plan modernizationemployerstoconsiderasbenefitshas begun.plans are modernizedMental healthMercerMarshBenefits (MMB)surveyed226 insurersacross56countries'toexploregaps persist.thekey trends shaping employer-provided healthbenefits toproduceourHealthTrends 2023 report.These trends will be invaluable for employers designing healthcare plans tomeettheneedsoftheirbusinessesandemployees.Insurers'practices,policylanguage5Plan managementflexibility.willingness to innovateand access tolargepools of claims datagive themarequiresgreaterrigor.key role in shaping the future of employee benefits.Fielded inAugust2022. Global insurer survey report. MMB health:trends 2o23: Navigating cost:trends and using innovation in employer-provided healthcare3Fivekeytrendsdrivingthefutureofemployer-providedhealthcareThefindingsofMMB'sHealthTrends2o23surveyshowfivekeytrendsinfluencingemployer-providedhealthcareforthefuture.区Per-personmedicalCoVID-19 continuesPlan modernizationMental healthPlanmanagementTrendcostincreasesto impact claimshasbegun.gaps persist.requires greaterare back to pre-experience.rigor.pandemiclevels.PlansponsorsmustfactorInsurers saypeopleareDigital health support isDespiteprogress,plansBenefitsmanagersmustforecastedcostincreasesexperiencing the effects ofrapidly evolving,but therecontinuetoexcludementaldevelop more robustWhat itintobudgets anddisruptedcarealongsidehasbeenlimitedprogresshealth care or providestrategiesand preparemeansdeterminehowtobalanceongoingCOVIDclaims.on health sustainability.onlyminimal coverageformorecomplexempathywitheconomics.Employers areleftto fillunderwriting and planthe gap in other ways.design decisions.68%55%1in216%Morethan1in5Keyfindingofinsurersexpectplanof insurersreportaninsurershaschangedof insurers report notinsurers in Asiaaresponsorstoprioritizeincrease in later-stageorexpectstochangeproviding plans that coveradjusting medical planimprovementsdespitediagnosis of illness dueeligibility requirementsmental healthservicespremiums basedonforecasted double-digitto deferred care.andeligible expenses(versus 26% in.2022).COVID-19vaccinationmedicaltrendratesinto makecoveragemorestatus.somemarkets,inclusivefor those whoidentify as LGBTQ+ Global insurer surveyreport.MMB.health trends 2023:Navigating costtrends and using innovation in employer-provided healthcareSection1Per-personmedicalcost increases are backto pre-pandemiclevels Global insurer survey report. MMB health:trends 2023: Navigating cost trends and using innovation in employer-provided healthcareDefining'medicaltrendMedicaltrendrates,2019-2023Medical trendistheyear-over-yearcost increaseforclaimsunderamedicalplanonaAlthoughthe impactof COVID-19onclaimspatterns variesaround theworld, in 2021,per-person basis,assuming nochanges to the benefits provided.This rategrowth isinsurers generally sawmedical trendrates return topre-pandemic(2019)levels.Thistheresultofavarietyoffactors, including:followedadrop in2020thatresultedfromlowerusageofmedicalservicesbecauseofMedical inflation (increaseinper-unitcostsforthesameservice/supply)theCOVID-19pandemic.There isextensivegeographical variation,withsome regions(forexample,Europe,Canada,Pacific)slightlyexceedingpre-pandemiclevelsandAlteredtreatmentmix (forexample,movingtomoreexpensivetreatments)others (for example, Asia, the Middle East and Africa [MEA), Latin Americaand theUtilizationpatterns(forexample,peoplenotaccessingservicesduetoCaribbean [LAC]coming in justbelow.COVID-19-relatedrestrictions)Withtheexceptionof theLAC region, insurersacross regions also expectmedical trendRegulatorychangesratestoexceed2019levelsin2022and2023,drivenbyfactorssuchasincreasedcostmore costlytreatment).In 2023,the rate of growth is generally expected to remainsteady at2022levels.Figure1:2019-2023medicaltrend20192020202120222023Global9.7%5.7%10.1%12.7%12.6%Canada6.9%3.9%7.1%7.0%7.0%Asia10.2%3.5%8.9%10.7%11.5%Pacific4.6%5.2%5.0%5.6%5.8%Europe8.0%3.5%10.9%13.9%13.8%Middle East and Africa11.1%9.6%10.2%15.0%13.8%LatinAmericaand Caribbean13.4%8.0%11.1%10.7%11.3%Rates for 2019,2020 and 2021areretrospective.Rates for 2022and 2023are prospective.Unweighted global averages used.SeeAppendix Afor a listofestimated medical trend rates by marketanddata sources Global insurer survey report.MMB health:trends 2o23:Navigating cost trends and using innovation in-employer-pro