Medical costs across APAC projected to increase by 14% in 2026

Medical inflation remains highest in Asia Pacific, with Latin America at a close second (11.9%), followed by Middle East and Africa (11.3%) owing to region-specific service pressures alongside global structural factors.

Medical costs around the world are set to rise again in 2026, with medical inflation remaining highest in Asia Pacific, where costs are expected to increase by up to 14% — compared to 13.2% in 2025.

According to WTW's recent 2026 Global Medical Trends report, this upward trend is expected to persist for more than three years. 

Per the findings, medical inflation continues to outpace general inflation, driven by technology costs, ageing populations, and rising demand for quality care.

In Australia, hospital and medical costs remain above inflation due to technological advancements, higher healthcare wages, and chronic disease prevalence. China faces growing medical inflation spurred by increased hospital access, more testing, and rising health awareness, though limited mental health coverage has tempered claims. In Hong Kong, costs stay high amid new drugs and technologies, with upcoming public hospital fee hikes likely to push private prices further.

India continues to see rising medical inflation, driven by expensive precision treatments, biologics, and growing chronic disease rates. Indonesia has improved from last year’s 140% claims loss ratio, but medical inflation persists due to costly pharmaceutical imports and rupiah depreciation. In Malaysia, healthcare costs are set to rise faster than the regional average, fuelled by tariffs, technology costs, and lack of pricing regulation.

The Philippines' Health Maintenance Organisation sector rebounded in 2024 but still faces cost pressures from overutilisation and unregulated fee hikes. Singapore’s rising medical trend stems from ageing, chronic disease management, costly innovations, and high operating expenses linked to property and staffing shortages. Taiwan expects substantial inflation in 2026 from higher diagnostic and pharmaceutical costs and mental health demand.

Meanwhile, Vietnam continues to face escalating costs of drugs, equipment, and advanced treatments.

READ MORE: Top 10 countries in APAC with the highest maternity pay

Infographics & lead image: 2026 Global Medical Trends