The cost of healthcare insurance in the Philippines is projected to further increase this year, surpassing the global average, due to “considerable volatility” caused by the prolonged pandemic, according to a survey of medical insurers.
Based on the 2022 Global Medical Trends Survey conducted by Willis Towers Watson (WTW), employer-sponsored healthcare benefit cost trends are expected to increase by 14.4 percent on average in the Philippines this year.
The projected average cost growth is nearly double the global median of 8.1 percent and Asia Pacific’s (APAC) 7.6 percent.
Comparing specific markets, insurers expect cost trends to be as high as 16.2 percent in Malaysia and 23.5 percent in India this year, while in China, Singapore and Vietnam, the increase are projected at 8.3 percent and 9 percent, respectively, according to the research.
Looking ahead, WTW said that medical insurers expect healthcare cost trends to accelerate beyond 2022, with six in 10 projecting higher or significantly higher costs over the next three years.
“With COVID-19 surging in different countries at various times in 2020 and 2021, survey results showed the pandemic’s asymmetrical arc created considerable volatility in healthcare utilization and costs around the world,” WTW said in a statement.
Cedric Luah, head of Health and Benefits, International, at WTW explained that COVID-19 produced the biggest impact to global medical trend variation the industry has seen, and they expect the resultant repercussions and volatility to extend into 2022 and beyond.
“Markets and employers are feeling the impact differently. Some have experienced the recovery’s demand for regular medical services in 2021, while others will see it next year or after,” Luah said.
“The pandemic, combined with the changing face of work, has had a significant effect on healthcare needs, delivery of services and the future drivers of medical claims, which in turn will have impact on medical inflation trends,” he added.
Meanwhile, Susan La Chica, WTW Philippines Health and Benefits head said the mental wellbeing of employees continued to be a key employer focus.
“In the Philippines, the healthcare system has also pivoted to include virtual mental wellbeing support, largely to ensure that employees receive the quality healthcare support they need as they continue to work from home, both virtually and physically,” La Chica said.
According to the survey, almost four in 10 insurers (35 percent) identified the addition of new wellbeing services as the biggest change organizations in APAC have made to their medical portfolios in 2021.
This is followed by telehealth services at 26 percent, underscored by the potential for cost reductions that virtual healthcare creates.
Half of the insurers now also offer telehealth across select plans, with 92 percent offering these services at no additional cost.
“It is likely that the adoption of telehealth will continue post-pandemic. In fact, the role of telehealth will continue to evolve not only as a digital platform for ease of access to the right care but also as an effective way to close the gap in accessing healthcare services,” La Chica said.
“In addition, we expect the scope of services provided by these health-tech to expand further into wellbeing offerings, including but not limited to mental health services, given the impact of COVID on emotional wellbeing of employees,” she added.