Employer healthcare costs in the Philippines are projected to rise 14% in 2026, slightly slower than this year’s 15% rate, according to British-American consultancy firm Aon.
The moderation reflects an easing of medical inflation after two years of sharp increases across Asia-Pacific, Aon said in its 2026 Global Medical Trend Rates Report.
The Philippines joins China, India, Singapore and Vietnam among markets expected to post lower growth in medical plan costs next year.
Aon defines ‘medical trend’ as the annual percentage increase in the cost of providing employer-sponsored health coverage, factoring in inflation, healthcare utilization, prescription drug prices and the adoption of new medical technologies.
Globally, the 2026 medical trend rate is forecast at 9.8%, while Asia-Pacific’s average is higher at 11.3%, underscoring the region’s elevated healthcare demand and cost pressures.
‘The Asia-Pacific region continues to face double-digit medical trend rates, reflecting both the resilience of healthcare demand and the need for medical insurers to return to profitability,’ said Tim Dwyer, Aon’s head of Human Capital for Asia-Pacific.
Cost levers
To address rising costs, Dwyer urged employers to invest in preventive healthcare and wellness initiatives that help manage employee health before illness occurs.
For the Philippines, Aon expects gross medical trend rates to decline by one percentage point, while net trend rates-which account for cost management measures such as co-pays and wellness programs-are projected to drop to 11.1% from 12%.
This is due to employers’ response through wellbeing initiatives, the study said.
Hypertension cases. High blood pressure and hypertension remain the most significant drivers of medical claims in the Philippines, mirroring trends in 18 other markets covered by the study.
Hypertension also underpins other costly diseases, including cardiovascular conditions, which continue to dominate health-related spending across Asia-Pacific.
Stabilizing after pandemic rebound
Across the region, Aon said the cost of specialty drugs, broader access to private healthcare, and aging populations continue to drive medical inflation.
The pace, however, is stabilizing following pandemic-era disruptions and sharp rebounds in medical utilization.
‘Employers must move from reactive cost control to proactive health strategy,’ Dwyer said. ‘Building… sustainable benefits programs will be critical to managing workforce wellbeing.’
The report, based on data from over 100 Aon offices worldwide, aims to guide companies in budgeting for employee healthcare amid persistent inflation and geopolitical volatility.