MANILA, Philippines — After two years of aggressive increases, the pace of employer-sponsored healthcare cost growth in the Philippines is expected to slow down in 2026, according to the latest data from the British-American consultancy firm Aon. The firm projects that medical plan costs for Philippine employers will rise by 14% in 2026, a slight moderation from the 15% rate recorded in 2025.
This anticipated easing reflects a broader regional trend of stabilizing medical inflation across the Asia-Pacific (APAC), as detailed in Aon’s 2026 Global Medical Trend Rates Report. The Philippines is not alone in this projected slowdown, joining major economies like China, India, Singapore, and Vietnam, all of which are forecast to experience lower growth in their medical plan costs next year.
Aon defines the “medical trend” as the annual percentage increase in the cost of providing employer-sponsored health coverage. This metric is a comprehensive measure, factoring in standard inflation, changes in healthcare utilization (how often employees use services), prescription drug prices, and the adoption rate of new medical technologies.
Asia-Pacific: Elevated Costs Despite Stabilization
While the Philippines and several other markets show signs of moderation, the Asia-Pacific region as a whole continues to face significant cost pressures.
Globally, the 2026 medical trend rate is forecast at 9.8%. However, Asia-Pacific’s average remains considerably higher at 11.3%. This elevated regional average underscores the area’s robust healthcare demand and persistent cost challenges, often fueled by economic growth and expanding access to private care.
Tim Dwyer, Aon’s head of Human Capital for Asia-Pacific, commented on the resilience of the region’s high trend rates: “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.”
The report indicates that key structural drivers of medical inflation across the region include the rising cost of specialty drugs, the broader access to private healthcare services, and increasingly, the healthcare needs of aging populations. The current pace of cost growth is, however, beginning to stabilize following the sharp rebound in medical utilization immediately after the easing of pandemic-era restrictions.
Proactive Measures Drive Down Net Costs
A significant takeaway for the Philippines is the impact of proactive employer intervention. For the country, Aon expects the gross medical trend rate (before cost management measures) to decline by one percentage point to 14.0%.
More importantly, the net trend rate—which accounts for cost management measures implemented by employers, such as introducing or adjusting co-pays and implementing wellness and preventative health programs—is projected to drop from 12% to 11.1% in 2026. This nearly one-percentage-point drop in the net rate is directly attributed to the positive response and investment from employers in wellbeing initiatives, demonstrating the effectiveness of strategic cost management.
Country
General Inflation (2025)
Medical Trend (2025)
General Inflation (2026)
Medical Trend (2026)
Change (trend points)
Philippines
3.0%
15.0%
2.9%
14.0%
1.0
China
2.0%
8.0%
0.6%
7.8%
0.2
India
4.2%
13.0%
4.1%
11.5%
1.5
Singapore
2.5%
14.0%
1.5%
13.0%
1.0
Vietnam
3.4%
12.9%
2.5%
12.2%
0.7
Asia-Pacific average
2.8%
11.1%
2.4%
11.3%
0.2
(Source: Aon 2026 Global Medical Trend Rates Report excerpt)
Hypertension: The Primary Claim Driver
Understanding the specific conditions driving claim costs is crucial for effective intervention. In the Philippines, high blood pressure and hypertension remain the most significant drivers of medical claims. This trend is not unique, mirroring the top claim driver in 18 other markets covered by Aon’s global study.
The burden of hypertension extends far beyond itself, as it frequently acts as an underlying risk factor for other, more financially devastating diseases. Consequently, cardiovascular conditions, which are strongly linked to high blood pressure, continue to dominate health-related spending across the Asia-Pacific region.
This data underscores the importance of shifting employer focus from simply covering treatment to actively preventing chronic conditions. Aon’s head of Human Capital, Tim Dwyer, issued a strong call to action for businesses:
“Employers must move from reactive cost control to proactive health strategy… Building sustainable benefits programs will be critical to managing workforce wellbeing.”
The report emphasizes that investments in preventive healthcare and holistic wellness initiatives are essential cost levers. By helping employees manage their health before severe illness occurs, employers can mitigate high-cost claims and contribute to a more resilient and productive workforce. The ability of the Philippines to see a tangible drop in its net medical trend rate suggests that this strategic shift is already bearing fruit for forward-thinking companies.
The annual report, which aggregates data from over 100 Aon offices worldwide, serves as a vital budgeting tool, helping multinational and local companies navigate the persistent challenges posed by medical inflation, economic shifts, and global volatility when planning their employee benefits programs.
