Insurers expect China’s medical cost to increase 11% in 2025

Asia-Pacific is also slated to rise by 12.3% in 2025.

Medical costs in China are set to rise by 10.8% in 2025, continuing a trend of double-digit increases for the second consecutive year, according to WTW’s Global Medical Trends Survey.

Last year’s rate saw 8.7% whilst 2024 is bound to see 10.5%, according to WTW survey of insurers. 

Asia-Pacific is also slated to rise by 12.3% in 2025, thanks to rising health service usage, escalating pharmacy costs, and the adoption of new medical technologies are driving the surge.

Post-pandemic health challenges have continued into 2024, with ongoing outbreaks of upper respiratory viruses contributing to higher-than-expected medical inflation.  

China has experienced increased utilisation of medical services driven by its aging population, greater health awareness influenced by online media—particularly around preventive care and checkups—and the convenience of hospital visits. 

The recent surge in respiratory viral outbreaks has also added to the rise in hospital visits.  

Cancer incidence has also increased, primarily due to heightened awareness from health screenings, the spread of online medical information, and advancements in detection technologies. 

Whilst early detection allows cancers to be identified sooner, it remains a costly process that adds to overall healthcare expenses. 

Additionally, the adoption of newer, precise, and more effective cancer treatments has further driven up medical costs.  

The Chinese government has introduced measures such as the Diagnosis Related Group management system, centralised drug procurement, and adjustments to deductible thresholds within the social medical system to control healthcare expenditures. 

However, these measures' impact on reducing costs may not be immediately evident.