Health perk’s costs to rise 15% for cos, finds report

Mumbai: The cost of health benefits provided by employers is expected to increase by 15% in India, the highest in Asia. The rate of medical inflation has been the highest in India at 14%, which will drive up the cost of health benefits, according to a report by Mercer Marsh.

Since employer health benefits are provided mainly through group insurance covers, the cost of such policies is likely to rise. “Rising insurance claims could lead to higher premiums, tighter underwriting practices, or policy exclusions. To address the root cause, benefit plans need to integrate outpatient department treatments, critical illness coverage and wellness programmes in order to support colleagues in a more holistic manner,” said Prawal Kalita, Mercer Marsh Benefits (MMB) leader, Marsh India.

The results show that five countries in Asia experienced higher medical trend rates than the regional average (8.8%) in 2021.

India had the highest medical inflation rate of 14%, followed by China (12%), Indonesia (10%), Vietnam (10%) and the Philippines (9%).