Here we review GC Capital Ideas’ recent stories on healthcare and medical (re)insurance.
Guy Carpenter Market Pulse – Employee Stop Loss (ESL) Survey Results: The Guy Carpenter ESL survey focused on various issues, including market sizing, outsourcing of various functions, employee count and more. Our survey gathered responses from top providers in the U.S. market, representing various sizes, segments and distribution sources.
The Captive Business Strategy – Employee Medical and Other Heath Care Risks: Medical systems have historically been the quickest to adopt captives to control their employee healthcare costs. From regional hospitals with a single plan, to large hospital systems with multiple plans, the systems have found that a captive-based structure used at the parent level enables a more efficient purchase with uniform protection across plans. Instead of numerous affiliates within each human resources (HR) department buying their own stop-loss coverage, the parent can aggregate risk across their locations, giving them better efficiency, consistency and cost savings — as much as 20 percent on a stop-loss purchase, according to Timothy Pollis, SVP, Healthcare & Life Specialty Practice, Guy Carpenter.
The Groundbreaking Science Impacting Large Medical Claims: The real drivers of multimillion dollar medical claims are likely to come in the innovative new treatments that are being developed right now. Understanding what is coming down the Food and Drug Administration (FDA)-approved pipeline is the first step towards being adequately prepared. With the prospect of more innovation driving high cost medical claims, insurers have options to help them prepare.
Amidst Global Growth, Medical Trends Lift Insurance Costs: Medical trends continue to outpace inflation by almost three times — the average global medical trend rate for 2018 was 9.7 percent, with a similar increase expected for 2019 and an even higher rate for 2020. That’s a key finding of Mercer Marsh Benefits’ most recent Medical Trends Around the World report, which surveyed 204 insurers across 59 countries (not including the United States, a unique health care market) earlier this year.