The health maintenance organisation (HMO) sector in the Philippines chalked up losses of PHP4.269bn ($75m) in 2023, nearly triple the losses of PHP1.433bn in 2022, due to a substantial increase in claims and benefits paid, says a report released by WTW, a leading global advisory, broking and solutions company.
WTW, in its Global Medical Trends Survey report, states that medical claims frequency has significantly rebounded, now surpassing the pre-pandemic levels of 2019, with the cost per claim rising primarily due to higher costs of medical services and procedures.
In response to the increased losses, the HMO sector has adjusted its pricing assumptions annually to address the continuous increase in utilization trends, with 15% to 18% medical inflation assumptions over the past three years. Factors affecting medical inflation include rising hospital and clinic costs, increased professional fees and a higher frequency of diseases.
Although reports indicate that HMOs are recovering in the first half of 2024, ongoing negotiations between two HMO associations and various doctor groups regarding a potential 80% to 150% increase in professional fees are still driving the projected double-digit medical inflation for 2025.
Philippines - Medical cost trend (%)
Source: asiainsurancereview.com
Comments