Willis Towers Watson is reporting that the cost of employee healthcare benefits around the world is trending higher, mostly driven by increased costs of hospital and inpatient services, different technology and overuse of services.

Willis Towers Watson completed a survey called The Willis Towers Watson Global Medical Trends Survey, between October 2015 and November 2015.  The results reflect the responses from 174 medical insurers from 55 different countries from all over the globe.  Many of the participants have at least a 10% share of the group medical insurance market in their respective country.

The results revealed medical insurers are estimating the cost of healthcare benefits to increase by almost 10% this year.  Insurers in certain areas, like America and Africa, are projecting double-digit average increases for the third year in a row.  European regions, however, continue to show the lowest level of increase. 

Human resource experts feel that medical costs will continue to rise as long as hospital and inpatient service prices continue to increase.  When it comes to the most significant cost drivers outside of employer or vendor control, more than 50% of respondents cited the extreme costs of medical technology, with providers’ profit motives as a close second.