Hong Kong staff medical insurance costs rise 55% over three years

Hospitalisation rates, however, have not yet returned to pre-pandemic levels.

Despite recent stabilisation in average medical expenses in Hong Kong, a sharp rise in service utilisation has pushed up staff medical insurance expenses by 55% over the past three years, an index revealed.

The School of Professional Education and Executive Development (PolyU CPCE), in partnership with insurance consultancy GUM, has launched Hong Kong’s first Staff Medical Insurance Index, covering 19 years of data on utilisation, expenses, and premiums in the city’s group medical insurance market.

The Index comprises three components—the Utilisation Index, Expense Index, and Premium Index—and is based on data from 2006 to 2024. It will be updated quarterly.

Post-pandemic demand has significantly increased, with the Outpatient Utilisation Index recording a 102% rise over the past two years. 

Common respiratory illnesses such as colds and acute upper respiratory infections were key drivers, rising by 25% year-on-year in 2024. 

Hospitalisation rates, however, have not yet returned to pre-pandemic levels.

Whilst utilisation has surged, the Expense Index recorded a 6% decline last year, the first drop in four years. 

Average hospitalisation cost per surgery fell to $2,793.98 (HK$21,851), whilst outpatient expenses dropped 8% to $68.15 (HK$533) per visit. 

This was attributed to the increased use of same-day procedures for conditions like warts and gastrointestinal issues, and a higher number of minor outpatient cases lowering the average per-visit cost.

Premiums, however, have continued to rise. The Composite Premium Index increased by 55% between 2022 and 2024, driven mainly by higher hospital benefit claims. 

Experts attribute the rise in premiums to sustained high utilisation, which insurers factor into future pricing models.

PolyU CPCE Dean Prof. Peter Yuen warned that continued increases in utilisation could affect the long-term sustainability of the private healthcare system and increase pressure on the public system. The Index aims to help stakeholders make data-driven decisions to address this issue.

GUM Chief Executive Dr Gloria Siu noted that whilst medical inflation in Hong Kong is projected at 9% for 2025—lower than in many other parts of Asia—costs remain high, and the long-term trend is expected to rise.

The initiative also serves as a tool for employers to better manage rising insurance costs. Lawrence Hung, a member of the Index Committee, said companies should align insurance offerings with employee needs and implement preventive healthcare measures to contain premium growth.

($1.00 = HK$7.82)