Medical expenses in Thailand have been rising sharply since 2020 and are expected to climb an additional 15% next year, emphasizing the need for sustainable solutions and collaborative efforts involving individuals, businesses, and the government.
Willis Towers Watson (WTW), a global consultancy, reports that a significant rise in medical costs originates from profound changes in health needs and the way healthcare is delivered. The delay in routine care during the pandemic has led to an increased need for more intricate and expensive treatments.
The healthcare community has also noted an uptick in infection rates, especially among children, who are now more vulnerable to common illnesses after decreased exposure to routine viruses during lockdowns.
Jeremy Lim, who leads the market in Thailand and Malaysia for insurance consulting and technology practices at WTW, highlights these issues as drivers of escalating costs across all demographics and healthcare services.
For 2025, medical costs in Thailand are expected to increase by 14.2%, a slight decrease from this year’s 15.2% rise, yet still significantly exceeding the overall inflation rate of 1.2%, according to Mr. Lim.
“The continual development and advancements in medical technology and delivery infrastructure have also contributed to an increase in healthcare costs,” said Mr. Lim.
“These challenges demand a unified response from consumers, healthcare providers, and policymakers to build a more resilient and cost-effective healthcare system that ensures quality care remains accessible to all.”
With the rising healthcare demands and costs, public health systems are under greater strain, and private insurers are pressured to adjust their services and pricing structures accordingly, Mr. Lim adds.
Throughout the pandemic, life insurers managed to keep health insurance premiums stable, whereas general insurers were more prone to increase their rates.
“However, the cumulative impact of rising medical costs has made adjustments for the life insurance industry inevitable to ensure coverage remains sustainable,” said Mr. Lim.
One approach gaining traction is the repricing of health insurance policies, allowing insurers to accurately reflect current claims and trends, and maintain fair premiums across various age groups.
Insurers are also motivating policyholders to actively manage their healthcare expenses by opting for more economical choices, like generic drugs or home remedies for minor conditions.
Mr. Lim mentions that health insurance plans incorporating cost-sharing features, such as co-pay systems where costs are divided between the insurer and the consumer, and deductibles where the consumer pays a predetermined amount before the insurer covers the rest, encourage prudent healthcare spending.
He stresses that ensuring the long-term viability of health insurance in Thailand depends on the combined efforts of all major healthcare stakeholders.
Insurers are urged to negotiate hospital discounts, offer access to specialized services, and scrutinize medical bills to ensure necessary spending.
Hospitals are advised to adopt cost-efficient care protocols and focus on minimizing unnecessary readmissions, according to Mr. Lim.
He emphasizes the critical role of the government in promoting cost management, standardizing definitions of medical necessity, and regulating drug prices.
“As healthcare costs continue to climb, repricing health insurance is not only a financial adjustment but also a vital step towards a sustainable healthcare future,” he said.
If all parties involved—insurers, healthcare providers, policymakers, and consumers—collaborate effectively, Thailand can develop a robust system that preserves access to quality care while managing costs efficiently, Mr. Lim affirms.
