Medical costs in Thailand, which have been skyrocketing since 2020, are projected to increase by another 15% next year, requiring sustainable solutions and joint efforts from individuals, the private sector and the government, say analysts.
According to global consultancy Willis Towers Watson (WTW), the sharp increase in medical expenses stems from profound shifts in health needs and healthcare delivery. Many individuals who postponed routine care during the pandemic now require more complex and costly treatment.
The medical community also observed higher infection rates, particularly in paediatric care, with children more susceptible to common illnesses as a consequence of reduced exposure to routine viruses during the lockdown periods.
These factors caused a cascade effect, amplifying costs across all age groups and medical services, said Jeremy Lim, market leader for Thailand and Malaysia for insurance consulting and technology practices at WTW.
Medical costs in Thailand are projected to increase by 14.2% in 2025, down from a 15.2% hike this year, but far outstripping the general rate of inflation of 1.2%, he said.
"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."
As healthcare needs and costs grow, public healthcare systems face more challenges and private insurers face increasing pressure to adapt their services and pricing models, he said.
For years, life insurers providing health insurance maintained stable premiums, even during the height of the pandemic, while general insurers have historically been more likely to increase premiums.
"However, the cumulative impact of rising medical costs has made adjustments for the life industry inevitable to ensure coverage remains sustainable. 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," said Mr Lim.
Beyond repricing, insurers are encouraging consumers to play a more active role in managing healthcare expenses.
By choosing cost-effective options, such as generic drugs over branded ones or home treatment for minor ailments, policyholders can help mitigate rising costs.
He said health insurance plans with cost-sharing features, such as a co-pay scheme in which the consumer and insurer split the cost of the medical expense based on a specified percentage and deductibles, with the customer paying a specified amount and the insurer covering the remainder, promotes responsible healthcare spending.
"Ensuring the long-term sustainability of health insurance in Thailand requires cooperation from all key players in the healthcare ecosystem," said Mr Lim.
Insurers can work to negotiate hospital discounts, provide access to specialised services, and review medical bills to verify necessity and control expenses.
Hospitals can help by implementing cost-effective care protocols and focusing on reducing avoidable readmissions, he said.
Mr Lim said the government's role is equally essential, from setting policies that encourage cost management to standardising the definitions of what a medical necessity is and regulating pharmaceutical 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 insurers, healthcare providers, policymakers and consumers work together, Thailand can create a resilient system that maintains access to quality care while managing costs responsibly, said Mr Lim.