Aon plc's 2025 Global Medical Trend Rates Report, released on October 14, 2024, forecasts that medical plan costs worldwide will rise by an average of 10.0 percent in 2025. This figure is slightly below the 10.1 percent projected increase for 2024, which was the highest in a decade. The report includes trend data from 112 countries and locations, reflecting projected price inflation, technology advances, plan utilization, and cost shifting.
The Middle East and Africa region is expected to have the highest trend rate at 15.5 percent, while Asia-Pacific and North America will experience the highest year-over-year increases at 11.1 percent and 8.8 percent, respectively. Kathryn Davis, vice president of global benefits at Aon, noted that rising costs create unexpected budget increases and affordability challenges for employers and employees. Obesity emerged as a top global risk factor expected to drive future claims, particularly in the U.S., Canada, and Latin America.
Aon's report indicates that wellbeing initiatives are the leading mitigation strategy to control costs by encouraging preventative care and employee engagement. Businesses are leveraging this trend rate data to inform their budgets and benefits strategies. This analysis reinforces Aon's role in helping clients navigate complex health and wellbeing costs.
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