We’ve all felt it — that moment when your usual grocery bill suddenly costs more, or when gas prices seem to change every week. That’s inflation at work. It’s no longer a rare occurrence; it’s become a regular part of everyday life. And while it quietly affects almost everything we spend on, one area where it hits especially hard is healthcare.
Medical Inflation is felt across the globe, it has been on the rise, increasing from 7.4% in 2022 to 9.9% in 2024. This trend is driven by higher hospital expenses, advanced medical technologies, and growing demand for quality care. But here in the Philippines, its impact on healthcare hits even harder. In 2024, the country recorded a medical inflation rate of 13.9%, one of the highest in Asia. And this 2025, it’s projected to climb even higher — reaching 18.3% by year-end, according to Willis Towers Watson (WTW.) That means medical costs are rising faster here than in many other countries — and it’s something every Filipino family can feel.
What many people don’t realize is that medical costs tend to grow even faster than general inflation.
Here’s a quick reality check:
- Hospital room rates go up almost every year.
- Common procedures like appendectomy or gallstone removal can easily reach six figures in private hospitals.
- Doctors’ professional fees for routine consultations continue to rise.
- Medicines getting expensive
- Hospitals invest in advanced equipment and medical technology — and while access improves, it comes at a cost.
One unexpected illness can quickly drain your savings. According to Philippine Statistics Authority, In 2024, out-of-pocket health spending in the Philippines reached ₱615 billion—42.7% of total healthcare costs. Despite a 29.5% increase in government health spending, many families still face financial strain, often choosing between medical care and basic needs.
Because of this, many Filipino families end up resorting to what some call the “4 Ps” of healthcare financing: Pagtitiis, Pangungutang, Pagmamakaawa, and PhilHealth. We endure the pain, borrow money, seek help from others, or depend solely on basic coverage. But, these options often aren’t enough when medical costs keep climbing.
But here’s the good news:
you can play it smart and be one step ahead!
Having a health plan is one of the smartest ways to protect yourself from rising medical expenses. It acts as your financial shield, absorbing the impact of costly hospital bills so you don’t have to. Instead of worrying about where to get funds during an emergency, you can focus on what matters most: recovery and peace of mind. And here’s the smart truth — the cost of a health plan premium is still significantly lower than the actual cost of hospitalization, making it a practical and strategic investment in your well-being.
If you already have a health plan, take this as a reminder of why it’s such a wise decision. You’ve given yourself protection against something that increases every year. And if you’re still considering it, now’s the best time to start because inflation isn’t slowing down anytime soon.
So, what’s your game plan?
As the cost of basic needs and everyday commodities continues to rise, it’s easy to overlook one of the most essential one—healthcare. Just like how you review your budget each year, it’s just as important to revisit your health coverage to make sure it still fits your needs and lifestyle.
Connect with an AXA Financial Partner today to review your existing coverage or explore our comprehensive and best-in-class health plans, and be one step ahead!
