With medical inflation outpacing general inflation in Asia by around 10%, the cost impact on employer sponsored medical schemes will see a compounding effect over the next 5 years. Until now, employers have focused on conventional solutions while managing employee benefit costs which focus on further negotiating with the insurers or making plan design / coverage changes. However, there is little seen in terms of focus on cost drivers emerging from other aspects of the health value chain. Employees and providers are two key stakeholders that also contribute to medical costs due to their behaviors under an insured environment, and the focus needs to shift to identify these intrinsic cost drivers which are less evident to understand.
Medical Directors, Head of Compensation & Benefits, CFO, CHRO
Shelly Chang, Senior Associate, Asia Regional Consulting
Marina Sukhikh, Senior Analyst, Asia Regional Consulting