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Decoding medical inflation: the truth behind rising costs, and planning ahead for peace of mind

 

8-min read

Updated on 2026-7-3

Author: AIA Content Editorial Team

Have you ever stopped to think that, as we live longer, our need for medical care grows with us — and the bills climb year after year? Hong Kong's medical inflation has stayed stubbornly high of late, rising by around 78%1 over the past seven years, far outpacing general inflation. One study has even found that overall claim expenses in the medical insurance market surged by more than 60%2 in the four years following the pandemic — the equivalent of double-digit growth every single year. With medical costs rising relentlessly, planning your future health protection is no longer something to take lightly.

Three forces driving medical inflation

1. Ageing population | Longer lives, more chronic disease

In Hong Kong, average life expectancy has climbed to 83 for men and 88 for women3. As the population ages, chronic conditions such as cardiovascular disease, diabetes and joint problems are becoming ever more common. Many patients need long-term medication and ongoing treatment, pushing the demand for care — and the costs that come with it — steadily higher.

2. Long-term treatment becomes the norm | High cancer incidence and recurrence risk

Cancer has become one of Hong Kong's leading health threats, with a new case diagnosed every 15 minutes on average4. Roughly 1 in every 30 people in Hong Kong has been diagnosed with cancer at some point over the past 20 years4, and for some cancers the recurrence rate runs even higher. For example:
  • Ovarian cancer: up to 80%5
  • Pancreatic cancer: up to 80%6
  • Liver cancer: up to 70%7
  • Bladder cancer: up to 70%8
As the model of care shifts from "one-off treatment" to "long-term management", with ongoing courses such as targeted therapy and immunotherapy, medical costs become both higher and harder to predict.

3. Advances in medical technology | New hope that also lifts costs

Medical technology is advancing by the day, giving patients more treatment options and more hope, but it is also driving up overall healthcare costs.

Take the new CAR-T cell therapy: treating cancer with it can cost as much as HK$2 million to HK$3 million9. In cardiac care, the new generation dissolvable stent — a bioresorbable vascular scaffold (BVS) used in angioplasty — costs around HK$30,000, while the procedure itself can run from HK$100,000 to HK$300,000 at a private hospital10.
 
Advanced medical technology lifts treatment outcomes, but its steep cost has become a major force behind medical inflation.

Plan ahead — and lock in your protection while the timing is right

With medical costs climbing steadily, securing your health protection early is increasingly important. If you wait until your health has deteriorated before arranging coverage, you may face:
  • Adjustments to your premium
  • Restrictions on the coverage
  • In some cases, application may be declined
Building your protection early helps ensure that, when needed, you have access to appropriate medical support while easing the financial burden on you and your loved ones.
 
As Hong Kong's most popular insurance brand for 10 consecutive years11, AIA is committed to giving customers a diverse range of medical protection solutions spanning nearly 50 medical insurance products and add-on plans, that flex to fit different life stages and budgets.
 
In 2025, AIA paid out more than HK$10.3 billion in medical claims12 — on average helping more than one customer settle a medical claim every minute, and standing behind around 560,000 families with solid support when they needed it most.
 
Let protection be more than a promise — a safeguard you can rely on whenever you need it. Together, let us protect your health and that of your family, and achieve "Healthier, Longer, Better Lives".

Medical Inflation & Health Trends FAQs

Medical inflation refers to how fast the cost of medical services and related expenses is rising. It outpaces general inflation, driven mainly by an ageing population, the rise of chronic disease (such as cancer), and advances in medical technology. In Hong Kong, medical inflation reached 78%1 over the past seven years — well above the general inflation rate, a sign that medical costs keep accelerating.

The longer we live, the greater our chances of developing chronic conditions such as cardiovascular disease, diabetes and joint problems. Most of these call for regular follow-ups, ongoing treatment and medication, turning medical spending from a one-off cost into a long-term commitment — so total medical costs build up year after year.

The real value of health protection lies in preparing for the health risks that lie ahead. Wait until your health has worsened to arrange cover, and you may face the following:
  • Higher premiums: with greater health risk, you may need to pay an extra premium loading
  • Restricted cover: certain pre-existing conditions or related illnesses may be listed as exclusions
  • Possible decline: your health and medical history may mean cover cannot be granted
This document was designed and developed by AIA from data or information gathered from internal or external sources. This document is for information and reference purpose only, and should not be considered as a recommendation, an offer or solicitation for any of the insurance products mentioned herein. While we have endeavoured to ensure the content of the document is accurate, comprehensive and timeliness at the time of preparation and/or updating of the document, however, we do not guarantee nor warrant the accuracy, completeness and timeliness of the data source. Thus, we are not liable for any claim and/or loss arising from the data source. Any opinion or information contained in the document is made on a general basis and should not be relied upon by the readers as advice. AIA reserves the right to make changes and amendments to its opinions expressed and information contained in the document at any time, without any prior notice. You are advised to seek independent advice from appropriate professionals (such as, licensed investment advisor/financial consultants, etc.) before making any decision on the topic(s) mentioned in the document. AIA expressly disclaims all liability for the use or interpretation by others of information contained in this document.
 
This information is owned by AIA, and may not be copied or reproduced without AIA's written consent. You may not copy or store this content on any other website or content platform. AIA reserves the absolute discretion to suspend or remove this article at any time without prior notice. In the event of any infringement and/or legal issues, AIA reserves the right to take appropriate legal action and seek compensation.

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  • The total medical claims amount and the customers with claims paid are based on approved-case data for both individual and group medical claims.
  • Individual medical claims data excludes other general outpatient plans and hospital cash plans; group medical claims data covers inpatient, outpatient and hospital cash benefits.
  • The above data only includes approved cases and is calculated by coverage category.
  1. "The past seven years" refers to data from 2019 to 2025. The increase in medical inflation is calculated on a compound annual basis with reference to data from the WTW Global Medical Trends Survey, 2021 to 2026.
  2. The Hong Kong Federation of Insurers — The Determinants of Post-Pandemic Medical Inflation: An Analysis of Private Insurance Claims Data in Hong Kong (2026)
  3. Census and Statistics Department, HKSAR Government — Statistics and You (November 2025)
  4. Hong Kong Cancer Registry — Overview of Hong Kong Cancer Statistics of 2022 (2024)
  5. MyOvarianCancerTeam website — Recurrent Ovarian Cancer Explained (2025)
  6. World Journal of Surgical Oncology website — Risk factors for early recurrence in patients with pancreatic ductal adenocarcinoma who underwent curative resection (2023)
  7. MDPI website — Emerging Prognostic Markers in Patients Undergoing Liver Resection for Hepatocellular Carcinoma: A Narrative Review (2024)
  8. BMC Cancer website — Clinical determinants of recurrence in pTa bladder cancer following transurethral resection of bladder tumor (2022)
  9. UrbanLife — HKU and Hong Kong Science Park jointly set up a cell therapy laboratory to research CAR-T cell therapy for patients with blood cancer and cardiovascular disease (2023)
  10. Hong Kong Economic Journal — Angioplasty costs: public vs private hospital fees; recurrence rate below 5%! A detailed guide to the angioplasty procedure (2025)
  11. According to the YouGov Hong Kong BrandIndex (2016–2025), compiled by global research and data analytics firm YouGov, AIA has been the Top Insurance Brand in Brand Consideration and Most Likely to Purchase in Hong Kong for 10 consecutive years.
  12. Source: 2025 AIA Medical Claims Data

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