Medical costs in Singapore are projected to rise by 16.9% in 2026, surpassing this year’s rate of 15.5%, according to WTW’s 2026 Global Medical Trends report. This increase is part of a broader trend in the Asia Pacific (APAC) region, which is expected to experience the highest global increase at 14%. The report highlights the need for companies to consider co-pay or co-insurance designs to manage costs and discourage excessive claims.
The report reveals that 57% of insurers in APAC expect medical cost trends to continue rising over the next three years, with 42% anticipating these levels to persist beyond that. Key drivers include new medical technologies, cited by 77% of insurers as the primary factor, followed by advancements in pharmaceuticals and a lack of cost-sharing mechanisms.
In Singapore, factors such as an ageing population, increased disease incidence, and the adoption of costly new technologies contribute to the rising costs. The shortage of healthcare staff and high operating expenses also play a role. Fong Han Wei, Head of Health & Benefits in Singapore, noted that insurers are raising co-pays and deductibles to share costs with insured members.
Eva Liu, Head of Strategic Development, Asia Pacific, Health & Benefits at WTW, emphasised the importance of understanding these trends to develop effective strategies. She suggested that employers invest in education and prevention, and incorporate flexibility into employee benefits programmes to manage costs effectively.
