Philippine medical costs projected to rise 18.3% in 2025

This was correlated to the rise in the state insurers' claims and benefits paid.

Insurers project that medical costs in the Philippines are seen to rise by 18.3% in 2025, slightly lower than the forecasted 19.3% for 2024, according to WTW’s Global Medical Trends Survey.

In 2023, rates were at 17.9%, according to the report. 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.

The Philippine health maintenance organization (HMO) industry reported significant financial losses, with net losses reaching $25m ( P1.433b) in 2022 and nearly tripling to $75m (P4.269b) in 2023. 

The sharp increase was attributed to a substantial rise in claims and benefits paid.

In response, the industry has adjusted pricing assumptions annually, factoring in medical inflation rates of 15% to 18% over the past three years. 

Medical inflation has been driven by rising hospital and clinic costs, higher professional fees, and an increased frequency of diseases. 

Claims frequency has also surpassed pre-pandemic levels from 2019, with the cost per claim escalating due to the growing expense of medical services and procedures.