Medical costs rising in Thailand

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Medical costs in Thailand surge

Consultancy pleads for cooperation

by Nareerat Wiriyapong

November 27, 2024

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.

https://www.bangkokpost.com/business/ge ... land-surge

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The following statement was made in the article posted above:

"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."

Not surprising considering the fact that medical charges at some of Thailand's private hospitals are grossly over-inflated. As an example: I paid 24,000 THB baht (out-of-pocket) a few years ago at a Thai government hospital (Queen Sirikit) to have vein surgery on both legs. This included a semi-private room, surgery on both legs, pain medication, and aftercare. The same surgery at a private hospital such as BPH would have been closer to 240,000 baht...just to emphasize the point I'm making.

I just renewed my health insurance policy with Pacific Cross in October and there was no increase.

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Not surprising considering the fact that medical charges at some of Thailand's private hospitals are grossly over-inflated.

I think the most important aspect to remember is making sure to have good medical insurance. These prices will not be coming down. Unless you are prepared to pay those kinds of prices out-of-pocket, without proper medical insurance, now you're a time bomb. I don't think anyone needs me to remind that once you can be described as "elderly", sooner or later medical issues are going to happen - expensive medical issues.

And yet a number of farang are living in Thailand without any medical insurance at all.




"Karl Malden stole my travelers checks."
- Rodney Dangerfield

[Jun]

. As an example: I paid 24,000 THB baht (out-of-pocket) a few years ago at a Thai government hospital (Queen Sirikit) to have vein surgery on both legs. This included a semi-private room, surgery on both legs, pain medication, and aftercare. The same surgery at a private hospital such as BPH would have been closer to 240,000 baht...just to emphasize the point I'm making.

I thought the government hospitals weren't very good. Have I misunderstood that?

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I thought the government hospitals weren't very good. Have I misunderstood that?

It depends on which government hospitals you are talking about. Some are not my idea of a hospital where I would want to find myself (and no, we are not going to mention which ones due to Thailand's libel and defamation laws).

On the other hand, the Queen Sirikit hospital has an excellent reputation, although recently started charging separate prices for farang, but still less expensive than many of the private hospitals. It wouldn't hurt to check with your insurance company to make sure whether they will cover you there.

I doubt the powers-that-be would have tolerated a second rate hospital bearing the name of the queen.

The hospital is in the Rayong province, close to the U-Tapao Airport

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On the other hand, the Queen Sirikit hospital has an excellent reputation, although recently started charging separate prices for farang, but still less expensive than many of the private hospitals. It wouldn't hurt to check with your insurance company to make sure whether they will cover you there.

Yes indeed, Queen Sirikit uses the same doctors that the private hospitals use who work on a rotational basis and provide excellent services IMO. They have long ques - but with all the young Navy recruits walking around it didn't bother me a bit. Another government hospital which receives high marks is in Sri Ratcha. With these two exceptions most of the others have very poor reputations.

Unfortunately, my insurance policy with Pacific Cross does not cover me at any government hospital including Queen Sirikit, but the costs are so reasonable that I don't mind paying out-of-pocket. By doing this I avoid disrupting the annual benefit I receive from Pacific Cross for not filing any claims during that year.

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Unfortunately, my insurance policy with Pacific Cross does not cover me at any government hospital including Queen Sirikit, but the costs are so reasonable that I don't mind paying out-of-pocket. By doing this I avoid disrupting the annual benefit I receive from Pacific Cross for not filing any claims during that year.

That sounds like a racket. I thought government hospitals were cheaper than private hospitals. But they don’t cover you? They give you a benefit ( like a rebate), for not using them? Like my car insurance I don’t want to report any minor accidents so my rate doesn’t go up.

I hope they come through for you if you get a major illness like cancer or heart disease.

I’m very fortunate because I was a government employee for the USA, I’m covered well overseas. But the republicans want to end this and I’ll probably have to buy private insurance eventually.

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the republicans want to end this and I’ll probably have to buy private insurance eventually.

I hope not. If they want to end those kinds of benefits, I hope what they will at least be reasonable about it. They could end anyone newly coming in, but not end them for people who already have these benefits. I can't see how that could sit well for people who would entirely lose benefits they already have, especially those who are getting too old to suddenly have to buy their own insurance or would have to pay unaffordable rates and accept a very high deductible if they can even find a company willing to cover them. People 70 years old and over might find it impossible to find a medical insurance company that would cover them at all.

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.......That sounds like a racket. I thought government hospitals were cheaper than private hospitals. But they don’t cover you? They give you a benefit (like a rebate), for not using them?

The discount (rebate as you call it) offered by the insurance company provides an incentive to policy holders to focus on living healthy to help minimize how often you have to seek medical care. It also provides an incentive to use less expensive treatments for non-life threatening concerns when it makes sense - like the use of local clinics, state hospitals, etc.

A little History:

All government hospitals in Thailand are paid for using Thai tax dollars and are primarily intended to provide care to the general Thai population. The majority (>90%) of all Thai nationals receive free medical treatment at government hospitals under a Program called "Gold Card Scheme", and the ones who don't pay very little. They have a separate fee structure for foreigners who are charged more than Thais for medical treatment which is understandable - but MUCH LESS than a private hospital as I highlighted before.

I imagine the reason most insurance company's, including Pacific Cross, don't cover treatment at government hospitals is probably because most are considered sub-standard to international norms.

Queen Sirikit is one of the exceptions because they were established to serve the families of Thai Navy personnel in Sattahip (Thailand's largest military base), including its high-ranking officers, and commissions the best doctors who work on a voluntary rotational basis. That's the reason the care there is so good. The doctor who performed surgery on my legs was actually officed at Bumrungrad/Bangkok - which is considered one of the top ranking international hospitals in the world.

I thought a little history would be interesting.

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I thought a little history would be interesting.

It interests me. A Thai friend only a couple months ago had to have gall stones removed. The operation was done at the government hospital in Sri Racha. The operation, hospital stay, prescriptions, follow-up appointments - everything - was free of charge.

Farang can go to these same hospitals, but non-thais are going to be charged. Probably significantly less than private hospitals, but still expensive.