The WTW Global Medical Trends Survey forecasts a continued increase in global medical costs, with a projected average growth rate of 10.4% in 2025. This marks a persistence of double-digit increases seen in 2023 and 2024, driven by factors such as advancements in medical technologies, reliance on private healthcare due to strained public systems, and increased healthcare utilization post-COVID-19.
Key drivers of this trend include increased utilization of mental health services, rising pharmacy costs due to pharmaceutical advancements, and pressure on private healthcare providers as public systems face resource limitations. Behavioral factors, such as overuse of services by practitioners, and the integration of telehealth offerings, are also contributing to cost increases. Insurers globally cite the rapid evolution of medical technology as a primary cost driver, with 69% identifying it as a significant factor. This highlights the ongoing challenge of maintaining a balance between cost sustainability and healthcare innovation.
