FILIPINOS could experience even more expensive health-care costs this year on the back of more expensive medicines and medical services, according to a new global report on health.
In the Mercer Marsh Benefits 2019 Medical Trends Around the World report, medical inflation in the Philippines is expected to increase to 13.7 percent in 2019 from 13 percent in 2018.
This will make the Philippines the second most expensive country in terms of medical expenses in Southeast Asia. Vietnam currently has the highest medical costs in the region at 14.2 percent this year, lower than the 14.5 percent in 2018.
“The gap between medical inflation and actual inflation continues in the Philippines. Companies must make employer-sponsored medical plans competitive, and prioritize solutions that will provide quality health care in the long term,” said Teng Alday, Mercer Philippines chief executive officer (CEO) and Health and Business leader.
Medical costs, the report stated, are bound to continue increasing and will even outpace inflation by close to three times this year and even higher in 2020.
Mercer Marsh stated in its report that health care is becoming more expensive due to “high-cost pharmaceuticals, new diagnostics and procedures, and overprescribing of low-value health tests and procedures.”
Risk factors
Globally, the top 3 health risk factors influencing medical cost are still metabolic and cardiovascular risk, dietary risk and emotional/mental risk.
However, on a regional level, there is variation in the top risk factors. For Asia, environmental risks which account for 52 percent of risk factors are causing more citizens to spend more for health care.
Mercer Marsh said poor health in the region is being caused by the ill effects of high pollution levels, specifically in many of the region’s major cities.
The report showed a significant increase in the incidence of respiratory diseases, gastrointestinal diseases and those of the circulatory system.
Insurers’ initiatives
In response, Mercer Marsh said the number of insurers investing in initiatives to enable quality-focused care, to better guide members to the right care options for them more quickly, has more than doubled. Globally, 29 percent now name this type of investment as a top strategic priority.
Mercer Marsh said insurers are responding by helping members make smarter health-care choices, with 63 percent of insurers providing education, tools and incentives to drive positive behavior.
The Middle East and Africa had the highest rate of adoption of programs of this type, with 71 percent of insurers proactively using such consumer-focused tactics with plan members. Globally, 78 percent are now considering or already support virtual health consultations.
“It is clear that health is a business imperative. Supporting and nurturing the physical, emotional, financial, and social well-being needs of employees returns many benefits to businesses,” Alday said.