The medical cost scenario in Hong Kong is evolving. Insurers have noted a return to pre-pandemic outpatient claim levels, with a significant driver being the spike in upper respiratory tract infections. The WTW Global Medical Trends Survey indicates that medical costs in Hong Kong are projected to increase by 9.8% in 2025, a deceleration from the double-digit growth of the past two years which was 10.3% each.
Across the Asia-Pacific region, costs are set to soar by 12.3% in 2025. The factors fueling this upward trend include a greater utilization of health services, the escalation of pharmacy costs, and the integration of new medical technologies. In Hong Kong, while the prevalence of chronic diseases has held steady, the demand from patients in China, especially for maternity care and surgeries in private hospitals, is contributing to the upward pressure on medical costs.
Surprisingly, this hike in healthcare costs is persisting in spite of the low general inflation and the current economic slowdown in the territory. It signals a complex interplay of factors that are shaping the medical cost landscape and has implications for insurers, healthcare providers, and patients alike, as they navigate the challenges and opportunities in this changing environment.
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