Medical Inflation in Thailand Surges 10.8%, Outpacing Global Rates, Threatening Fixed-Rate Insurance

It seems that while we strive to maintain our best health, what is "ailing" more severely than the bodies of Thai people may be their wallets. A recent report from the National Economic and Social Development Council (NESDC) revealed alarming figures: Thailand's medical inflation in 2025 is expected to surge to 10.8%, which is not only vastly higher than the country's overall inflation but also exceeds the global average of 10.3%.

This serves as a warning that no matter how wealthy you are or how well you have planned your finances, entering the current healthcare system could cause your "wealth" to deteriorate in an instant.

A shocking bill revealed! Prices for "saline solution and cotton" have soared beyond limits.

Data from NESDC reveals a startling reality through the "price gaps" of basic medical supplies in private hospitals compared to general market prices, showing markups so high that consumers find it hard to keep up.

• Saline solution (NSS 0.9%): market price is 45 baht, but in private hospitals it jumps to 919 baht (a price gap of 1,943%).
• Cotton balls: market price is 0.10 baht each, yet private hospitals charge 7 baht each (a markup of 6,900%).
• Rubber gloves: market price is 2.50 baht per piece, but private hospitals charge 17 baht (a 580% price gap).

Moreover, it's not only medical supplies; professional service fees and doctor charges constitute up to 45% of total medical costs. Basic services like intravenous solutions have price differences ranging from 50 baht to 10,140 baht, depending on each hospital's cost structure and discretion.

Why are medical fees in Thailand "more expensive" than the global average?

NESDC identifies three main factors driving the soaring healthcare costs in Thailand:

1. Investment in advanced technology: Over 92% of private hospitals are rapidly importing modern equipment such as CT scans, MRIs, and surgical robots to enhance competitiveness. High investment creates an incentive to maximize usage (supplier-induced demand), which may lead to unnecessary examinations in some cases.
2. Staff recruitment wars: Shortages of doctors and nurses have sparked intense competition in salaries, pushing these costs onto patients through higher service fees.
3. Limitations of the public system: When public hospitals face "full bed" situations (some provinces up to 110% occupancy) and long waiting times of 5-8 hours, patients with purchasing power have no choice but to turn to private hospitals, despite bearing higher costs.

The end of "fixed-rate insurance" as Loss Ratios near 90%.

This medical inflation crisis is impacting not only patients but also shaking the "health insurance business." Data indicates that claim ratios (Loss Ratios) could rise to 90% by 2026, a level that threatens insurers' survival without adaptation.

A key cause is inappropriate use of insurance benefits (Low-Value Care), such as minor illnesses leading to inpatient admissions (IPD) to claim insurance. Statistics from the Office of Insurance Commission (OIC) show that inappropriate claims account for up to 28% of all claims.

This explains why the "fixed-rate insurance era" is ending, replaced by new rules including:

• Co-payment: Insured individuals must share part of the treatment cost (up to 30-50%) if they have a history of frequent minor claims.
• Deductibles: To reduce premium burdens and prevent overuse of benefits.

Solutions and recommendations from NESDC.

According to the report, to prevent the Thai healthcare system from reaching a dead end, NESDC has proposed several rescue strategies.

• Government price control: There should be price caps on essential medicines and supplies in private hospitals, with transparent cost structures for consumer comparison.
• Use AI to reduce hidden costs: Implementing automation in management and accurate diagnostics can cut concealed expenses in medical bills by 30-40%.
• Patients must "check before paying": People should proactively question the necessity of tests and treatments and carefully review invoices. If irregularities are found, they should report to consumer organizations or the OIC immediately.

In summary, the medical inflation crisis is no longer distant because when illness strikes, a lifetime of savings may not suffice if Thailand's healthcare system lacks effective regulatory measures.

Source: National Economic and Social Development Council (NESDC)