The Key to Reducing Medical Costs

When thinking about medical costs, most people turn to the older public, known for their constant visits to offices. However, the reality points to a much broader concept, also including the so-called “millennials” (born between 1981 and 1995) among demanding and increasingly active health insurance clients.

This concern about having health insurance demonstrates one of the concerns of this generation, which is to be able to enjoy a better quality of life while still being an essential part of the workforce. A point that complements the increasingly latent desire to have a balance between professional and personal life - a concept that continues to grow, especially with companies that encourage this care among their employees.

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Use of insurance plans and health insurance on the rise

The scenario described so far is not an exception for just a few locations. In Latin America, for example, experts predict a reasonable increase in fees for medical services. And one of the reasons for this growth trend is the proactive approach of the companies themselves - which will play a significant role when considering increasing or reducing medical costs.

According to Aon's 2020 Global Medical Cost Trends Report, the average increase in spending in the Brazilian sector will be almost three times greater than the average inflation rate in the coming years. But this is not exclusive in the country, but rather a global trend, with costs that exceed inflation levels.

In the case of South America, the report pointed out that the main elements that generate an increase in medical costs are hospitalization, the use of clinics and laboratories for tests, and the medications prescribed by specialists.

On the other hand, when it comes to the diseases that lead Brazilians to seek medical attention, the main diseases that increase medical costs are:

• Cancer/tumor growth;
• Diabetes;
• Cardiovascular diseases;
• High blood pressure/hypertension;
• Diseases related to the nose, ears, throat, and lungs/respiratory diseases.

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Influence of the corporate environment on medical costs

Another important point is the impact of labor on increasing medical costs. According to the WHO (World Health Organization), occupational health problems generate losses of up to 6% of GDP (Gross Domestic Product) in countries around the world.

On the other hand, companies that strive to encourage occupational health through various actions are able to reduce sick leave by up to 27% - which represents a 26% reduction in health care costs.

In this scenario, Latin America stands out as the most advanced region in general terms in actions related to health and well-being, according to the Global Medical Cost Trends Report 2020. Good news that exemplifies greater employers' awareness of planning actions aimed at preventing and mitigating diseases among their employees.

In addition to raising awareness through education and promoting a culture of prevention, this type of approach helps to reduce costs to control chronic diseases - which appear in the ranking mentioned above (regarding the diseases that most lead Brazilians to seek medical attention).

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Is booming well-being in companies the key to reducing medical costs?

The data indicated in the Aon report help to understand a deeper analysis regarding the role of companies in reducing medical costs.

When the employer incorporates preventive strategies, such as health control and education, into their wellness plans, these actions aid in the reduction of chronic diseases. This is done not only through consultations and exams, but also with the dissemination of the importance of healthy eating and programs to encourage physical activity, for example.

In addition, there is also a growing number of strategies aimed at controlling the excessive use of the medical plan, such as adjusting the coverage of the plans and adding flexible benefit plans to limit monthly costs. There are also interesting initiatives when there is a large physical concentration of employees in one place with the creation of complexes that offer various medical services, in addition to activities aimed at well-being - such as gyms and meditation classes.

Although we do not have a universal answer to the challenge of reducing costs, the role of companies stands out as the protagonist of this issue, just as the implementation of a culture of health and well-being has become one of the pillars to achieve this objective.

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