AIA Philippines and MediCard Philippines Inc. have launched an integrated insurance product aimed at easing the burden of surging medical costs for local households and small businesses.

Dubbed Group Life + HMO, the offering combines health maintenance coverage with life insurance protection under a single framework. The launch comes as Filipino families face double-digit increases in out-of-pocket medical expenses, which topped ₱15,200 per individual in 2025.

These rising healthcare expenditures place severe financial strain on households, where 88 percent of Filipinos identify as their family's sole or primary breadwinner.

An AIA Philippines study last year revealed that nearly two in three Filipinos rely on personal savings for health emergencies—often triggering immediate financial setbacks.

MediCard Chief Executive Officer Julian Mengual noted that while healthcare is a fundamental benefit, today’s workforce “needs more than access to medical benefits alone.” He added that the solution allows employers to safeguard staff against both medical costs and the “wider financial impact of life's uncertainties.”

AIA Philippines President and CEO Melita Teo highlighted that the partnership marries AIA’s expertise in life, health, and financial protection with MediCard’s medical services under a single ecosystem.

According to the insurer, the plan integrates traditional HMO coverage with yearly renewable term life insurance, total and permanent disability protection, and accidental death coverage.

The approach specifically targets micro, small, and medium enterprises (MSMEs), which comprise 99.5 percent of Philippine businesses. By offering a “single provider relationship, one enrollment process, and one billing arrangement,” the partnership simplifies benefits administration for firms with limited HR resources.

As employee well-being increasingly defines workplace value, this integrated model provides a stronger safety net for the more than 60 percent of the national workforce employed by MSMEs.

During a media briefing, Mengual explained that the plans are customizable and accessible for groups as small as five employees. “We’re talking about ₱50 to maybe ₱200 [per employee]. That is extremely good value to complement the healthcare coverage that people need,” he said.

Despite ongoing price pressures, Mengual remains bullish on demand for healthcare plans, citing healthcare as an “enduring need” and noting that insurance penetration in the Philippines has historically remained low.