Medical costs in the Philippines are projected to increase by double digits for the third straight year.
This is according to a survey of health insurers conducted by WTW, a leading global advisory, broking and solutions company. Survey respondents cited increased use of health services, rising hospital and clinic costs, increased professional fees and a higher frequency of diseases as the drivers of overall medical costs in the country.
The WTW Global Medical Trends Survey found medical insurance costs are expected to increase by 18.3 percent in the Philippines, the second highest growth among markets in Asia Pacific. While the trend may be slightly cooling from 2024, it is projected to remain elevated over the longer term, it said.
The health maintenance organization (HMO) industry in the Philippines experienced significant losses of P1.433 billion ($25 million) in 2022, and nearly tripling to P4.269 billion I$75 million) in 2023 due to substantial increase in claims and benefits paid. Since then, the HMO industry has adjusted its pricing assumptions annually to address the continuous increase in utilization trends.
Medical inflation in the country has been hovering between 15 percent and 18 percent over the last three years, rising to 19.3 percent in 2024, according to the WTW survey.
