Healthcare expenses in the Philippines are projected to rise by 18.3% in 2025, marking a continuation of the country’s trend of double-digit medical cost increases, according to a recent study by WTW.
This growth rate is among the highest in the Asia-Pacific region and follows a similar trajectory observed over the past three years.
The findings, part of WTW’s 2025 Global Medical Trends Survey, highlight several factors driving medical inflation in the Philippines. Respondents cited greater use of health services, rising hospital and clinic charges, higher professional fees, and an increasing prevalence of diseases as key contributors to the surge in costs.
In the broader Asia-Pacific region, healthcare costs are expected to grow by an average of 12.3% in 2025. Markets such as Indonesia, the Philippines, and Malaysia are forecasted to experience higher-than-average increases.
In the Philippines, the projected growth rate is second only to Indonesia, which is expected to see a 19.4% rise.
Health maintenance organisations (HMOs) in the Philippines have faced mounting financial pressures due to rising claims.
Losses in the HMO sector reached PHP4.3 billion (US$75 million) in 2023, nearly tripling from PHP1.4 billion (US$25 million) the previous year. These losses have led to annual pricing adjustments by HMOs to address escalating utilisation trends.
According to Nel Badal, WTW’s head of health & benefits in the Philippines, the industry’s recovery remains uncertain amid ongoing negotiations between HMOs and doctor groups over proposed increases in professional fees ranging from 80% to 150%.
WTW’s survey pointed to internal and external factors fuelling the rise in medical expenses.
Internally, insurers noted that excessive recommendations for diagnostic tests and treatments by healthcare providers were a major contributor to higher costs. About 79% of respondents cited this practice as a key issue.
Externally, the rising costs of advanced medical technologies and the increased reliance on private healthcare due to strained public health systems were noted as significant drivers.
Additionally, telehealth services – while improving access to care – have added new costs to the system. A shortage of healthcare professionals in the Philippines has further compounded the problem.
Nadal said that pressure on private healthcare providers and the continued increase in medical costs underline the need for sustainable solutions to make care accessible and affordable.
Separately, a study by Manulife highlighted the growing financial anxiety among Filipinos, with 82% of respondents identifying rising healthcare costs as a top concern. This worry outweighed other economic pressures such as inflation and interest rates.
The survey revealed that 44.7% of health expenditures in the Philippines are paid out-of-pocket, totalling US$9 billion in 2022. This figure is expected to rise to US$13 billion by 2028, underscoring the strain on households.
Common health concerns among respondents included heart disease, diabetes, and cancer. Many reported making lifestyle changes, such as exercising more and adopting healthier diets, to mitigate risks. Others turned to cost-saving measures, including the use of government healthcare services and generic medicines.
WTW suggested that a combination of cost-sharing measures, collaborative efforts among stakeholders, and government initiatives could help address the financial burden. Sharing medical expenses between insurers and members, for example, could reduce unnecessary use of healthcare services and treatments.
