Skip to main content
main content, press tab to continue
Infographic

Healthcare benefit cost increases projected to continue into 2024

Asia Pacific highlights from the 2024 Global Medical Trends Survey

December 21, 2023

The 2024 Global Medical Trends projects double-digit growth in healthcare cost in many Asia Pacific markets.
Health and Benefits|Benessere integrato
N/A
Asia Pacific highlights from the 2024 Global Medical Trends Survey - described below
 

Some markets will continue to see double-digit growth in medical trend

Medical trend in Asia Pacific
2022 2023 2024
(projected)
Global 7.4% 10.7% 9.9%
Asia Pacific 7.2% 9.9% 9.9%

Gross medical trend in 2024 (projected)

  • Philippines: 13.9%*
  • Malaysia: 13.4%*
  • Indonesia: 12.7%*
  • South Korea: 11.7%*
  • Vietnam: 11.3%*
  • Singapore: 10.7%*
  • India: 10.5%*
  • Australia: 9.5%
  • Thailand: 9.3%
  • New Zealand: 8.5%
  • China: 8.4%
  • Hong Kong: 8.4%
  • Taiwan: 6.3%

* Markets with a higher trend than the Asia Pacific regional average

Almost 6 in 10 insurers also anticipate higher or significantly higher medical trend over the next three years.


What’s driving the cost increase?

External factors

  • Higher costs due to new medical technologies: 62%
  • Plan design with little or no cost-sharing: 35%
    • Plan design with limited cost-sharing is less of a concern globally (19% versus 35%)
  • Profit motives of providers: 33%
  • Changes in employee demographics: 27%

Insured members/provider behaviour

  • Overuse or misuse of care due to medical practitioners recommending too many services: 72%
    • Globally, this factor has declined since 2022 (from 74% to 59%) — but in Asia Pacific it remains high.
  • Insured members’ poor health habits: 50%
  • Overuse or misuse of care due to lack of integration between primary, specialty and facility care: 44%
  • Underuse or lack of preventive services: 39%

Top three conditions in 2023 – by costs, currently and in the next 18 months

  1. Cancer (neoplasms)
  2. Circulatory system (cardiovascular)
  3. Musculoskeletal and connective tissue

Top three fastest growing conditions over the next 18 months by incidence

  1. Circulatory system (cardiovascular)
  2. Cancer (neoplasms)
  3. Digestive system (gastrointestinal)

Mental health is one of the fastest-growing conditions globally — but it doesn’t make the top five in Asia Pacific. Could this be due to social stigmas and policy exclusions?


Managing the medical trend

How do you help clients effectively manage medical costs?

  • Contracted networks of providers: 67%
  • Annual limit per policy period (annual max sum insured): 65%
  • Limits on certain services: 56%
  • Promotion of preventive services: 53%
  • Preapproval for scheduled inpatient services: 51%
  • Targeted communication and/or educational campaign to address key claim drivers: 47%
  • Chronic condition or disease management programmes: 42%

DEI-related coverage is more likely to be excluded from Asia Pacific programmes than globally

Note: Group policies for more than 500 employees.
Global Asia Pacific Gap (percentage-point)
Fertility treatments 67% 75% 8
Gender re-affirming care (surgery/sex change, hormonal therapy, mental care) 57% 74% 17
Other mental and behavioural health including but not limited to autism, ADHD and so on 34% 52% 18
Treatments related to menopause 29% 44% 15
Mental and behavioural health 22% 32% 10

Next steps for employers

  • Conduct a programme review and identify gaps to analyse if coverage is the right fit and assess the inclusiveness of programme
  • Optimise communications so that employees understand what is available, when and how to use what coverage
  • Use data and analytics to understand health risk and key drivers specific to your organisation and take more targeted actions
  • Prioritise wellbeing by setting a clear corporate strategy or direction and ensuring benefits are accessible to all employees

Download

Meet our experts


Head of Strategic Development, Health & Benefits, Asia Pacific
email Email

Head of Health and Benefits, Asia Pacific
email Email

Related content tags, list of links Infographic Health and Benefits Wellbeing
Contact us