Kathmandu. Health insurance companies in Asia have projected a 12.5% increase in per capita medical claims spending this year. They need to determine whether spending on expensive treatments today can reduce future costs related to diabetes, obesity and other chronic diseases.
In a Sept. 22 report, Joseph Zajera, director of AM Best Company, noted that the discussion now focuses on whether long-term health benefits justify higher current pharmacy costs. “This debate is focused on glucagon-like peptide-1 (GLP-1) therapy. It’s used to treat diabetes and obesity,” Jazera said. That’s because insurance companies are evaluating their impact on long-term health care costs. ’
The Mercer Mars Benefits report predicts that per capita medical claims spending in Asia is expected to increase by 12.5% this year. “That is almost six times higher than the region’s projected inflation rate of 2.1%.
Among Asian markets, Indonesia is projected to see the highest growth at 17.8%. It is followed by the Philippines (16%), Malaysia (15%), Thailand (14.6%) and Singapore (14%).
About 83% of Asian insurers cited the increasing number of people seeking treatment for health conditions as the main reason for rising costs. While 78% of insurers cited changes in treatment methods and 71% of insurers cited rising medical prices.
GLP-1 therapy can increase the initial cost. This is because patients may need longer treatment. “Pharmacy costs are immediate and measurable. While many of the expected benefits such as lower diabetes complications, fewer hospitalizations and better management of obesity-related chronic diseases may not be achievable for many years,” Jajera said.
According to AM Best, the most obvious initial benefit may be more or less serious health problems than longevity. “Continued improvements could reduce future hospitalizations and other chronic disease-related costs,” the company said. ’
According to AM Best, most health plans do not cover the cost of GLP-1 weight loss drugs. As a result, many patients have to pay the bill. The company said, “Even if the price of the drug is low, the treatment may not be economical. Because many people may qualify.” ’
This debate comes at a time when insurance companies are under great pressure from high cost claims. According to Mercer Marsh, about 87% of Asian insurers are worried about expensive claims in the next 3 years. While 85% are worried about unnecessary or wasteful treatment. – Agency
