Medical costs in the Philippines are projected to increase by 18.3% in 2025, slightly lower than the anticipated 19.3% rise in 2024, according to WTW’s Global Medical Trends Survey. This marks a significant shift from the 17.9% rise in 2023, indicating a continued upward trajectory for healthcare expenses in the country.
The surge in medical costs is closely linked to a rise in claims and benefits paid by state insurers. These factors have been particularly evident in the Philippines’ health maintenance organization (HMO) industry, which has experienced substantial financial losses in recent years. Net losses for the sector reached $25 million (P1.433 billion) in 2022, and this figure nearly tripled to $75 million (P4.269 billion) in 2023. The sharp increase in losses is attributed primarily to the escalating number of claims and benefits disbursed.
WTW’s survey highlights that the broader Asia-Pacific region is also grappling with rising medical costs, with a projected 12.3% increase in 2025. Factors contributing to the surge in the region include a higher utilization of health services, soaring pharmacy costs, and the introduction of new medical technologies, which have collectively driven up expenses.
In response to these pressures, the HMO industry in the Philippines has adjusted its pricing assumptions annually. Over the past three years, insurers have accounted for medical inflation rates ranging from 15% to 18%. This ongoing rise in medical costs is attributed to various factors, including increasing hospital and clinic charges, higher professional fees, and a growing frequency of diseases.
Moreover, claims frequency has now surpassed pre-pandemic levels, with the cost per claim rising steadily due to the increasing expense of medical services and procedures. As these trends continue, both insurers and consumers may face further financial strain in the coming years.
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