PHL among Asian countries with highest medical trend rates

THE PHILIPPINES, together with Indonesia, Malaysia, and Vietnam, have reported the highest medical trend rates in Asia, according to the 2025 Health Trends report of Mercer Marsh Benefits, a global company that builds benefits strategies for workplaces.

Per the report, more than half of the markets see trend rates above 10% in 2024 and 2025. Asia leads at 13%, outpacing inflation by five times.

The Philippines, Indonesia, Malaysia, and Vietnam have the highest medical trend rates at 21%, 19%, 15%, and 15%, respectively.

The report defined medical trend as the year-on-year cost increase for claims under a medical plan on a per-person basis. The rate factored in medical inflation, altered treatment mix, utilization patterns, and regulatory changes.

The insurers that were surveyed identified an increase in utilization due to a higher incidence of health conditions (81%), ongoing medical inflation (73%), and changes to more expensive or advanced treatments (73%) as the key contributing factors in the region.

Persistent medical inflation (80%), in comparison, remains the chief driving factor worldwide.

The trends shaping employer-sponsored health plans in Asia, the report also said, are cancer as a major source of claims; a lag in deploying new techniques to maintain affordable plans; and gaps in what employees value against what insurers cover.

Only 26% of insurers in Asia offer preventive screenings by default, compared to 43% globally.

Moreover, while over 40% of the workforce value more support for reproductive health, less than 5% of insurers provide it by default.

Findings from a 2021 Small Business Trends survey by Guidant and the Small Business Trends Alliance suggested that — to make employees stay in the company — businesses should ensure that health benefits are competitive within the industry. This, the survey found, evokes a sense of security in the workplace over the larger competition.

The disparities between insurers and employees in Asia, the Mercer Marsh Benefits report said, requires ongoing dialogues with advisors and insurers so offerings remain relevant and competitive. — Patricia B. Mirasol