Currently, we are seeing general premium increases across the board from Thai health insurers.  2024 health insurance premiums increased by an average of 13%.

In the following article, I’m going to look at some reasons behind these increases and most importantly provide some pointers for you to save money on your health insurance premiums.

So, without further ado, let’s look at the driving forces behind these increases…

What is driving health insurance premium increases?

POST COVID DEMAND

COVID created a pent-up demand for health care in Thailand. During the pandemic people stayed at home. They saw a visit to the hospital as being too risky. People are making up for it now. 

The growing demand for healthcare services in Thailand is also driven by an ageing population, combined with a National push to establish Thailand as a medical tourism hub.

Changes in normal practices are driving premium increases. A particular issue in Thailand is over admission.

Inpatient premiums are based on the need for inpatient admission.  They are not designed to cover outpatient expenses.

It’s quite common in Thailand for hospitals to help facilitate admission for people who only have inpatient benefits and are seeking treatment for illnesses which are normally treated on an outpatient basis.

This is particularly common when children are involved and may go towards explaining why child premiums in Thailand are currently increasing markedly.

DEMAND FOR CERTAIN INTERNATIONAL HOSPITALS

Private health insurance can give you the option to use whichever medical provider you wish, provided the hospital is in your chosen insurers hospital network.

Whilst it is great to have these options, if everybody decides to use the top tier and most expensive hospitals costs for insurers will ultimately increase. 

These costs are then passed to the policyholder via higher premiums.

Several of the top tier hospital groups are expanding their networks throughout Thailand which in turn is increasing costs throughout the whole country.

As we will see later in the article, insurers are responding to this pattern by creating restricted hospital networks.

GENERAL INCREASES IN COSTS/INFLATION

Medical inflation is a measure of pricing increases in the medical sector. In Thailand it is projected to be around 15% in 2025.  (Bangkok Post).

Factors impacting this include the prices of medicines, hospital running costs, and doctors’ fees.

MEDICAL ADVANCEMENTS IN TREATMENT

Treatments for diseases such as cancer are improving which means having quality cancer coverage is essential.

Individually tailored therapies are resulting in people surviving for longer and having a better quality of life.  These therapies are expensive, which add to long-term costs for health insurance companies.

The use of robotically assisted surgery is growing.  This is now common with prostate surgery as well as joint replacement. Whilst it improves the accuracy of surgery, such procedures are more expensive than traditional forms of surgery.

Ways to save money on your health insurance premiums in Thailand

DEDUCTIBLES/CO-PAYS

A deductible or excess, is an amount that you agree to pay before the insurance takes over.  By shouldering some of the risk yourself the insurance company gives you a reduced premium.

The larger the deductible you use the higher the discount on your premium, allowing you to save money on your health insurance premiums.

A co-pay is a percentage of the overall bill that you are expected to pay.  These are often capped at a certain annual amount.

Either individually, or in combination, deductibles and co-pays are a great way to save money on your health insurance premiums.

USE AN EXPERIENCED BROKER

The insurance market changes on an almost daily basis.  New plans are released. Insurers have premium updates and claims processes change. 

Brokers have an up to the minute view of the overall market and have their finger on the pulse when it comes to the best value points in the market.

Using a broker does not incur any additional fee. Premiums they quote are exactly the same as the insurance company.

Benefiting from their expertise can save you money and most importantly make sure that you have a plan which meets your requirements.

They will also be on hand to assist with claims and renewals.

CUT OUT NON-ESSENTIAL COVERAGE

Whilst it’s nice to have outpatient coverage, it should not be your main consideration.

Serious accidents and illness will result in you being admitted into the hospital where expenses will fall under inpatient benefits.

Having adequate inpatient coverage is essential.

By choosing an inpatient only plan you can cost effectively protect yourselves against high-cost inpatient claims.

It’s possible to obtain insurance for dental, wellness, and optical expenses. However, given that these costs are predictable, having insurance for them is simply a luxury. 

When you break down cost differences between inpatient only plans and inpatient/outpatient you see that outpatient coverage is an expensive privilege.

STAY LOYAL AND BENEFIT FROM NO CLAIMS DISCOUNTS

Depending on the provider that you use, no claims discounts should be taken advantage of.

If you plan on using your insurance for the worst-case scenarios getting a discount for claims free years is a must.

Whilst not all providers offer no claims discounts, there is usually a benefit to remaining loyal to one provider.

FOCUS ON THAILAND ONLY

Focusing your area of coverage is a great way of reducing premium.

The only time you should ensure you have wider coverage is if you anticipate the need to have future surgery outside of Thailand.

Given the high standard of medical care available here in Thailand, for most people, there is no need to travel outside of the country for medical purposes.

You can then use travel insurance to cover temporary trips outside of Thailand.

USE RESTRICTED NETWORKS/PROVIDERS

More and more health insurance providers are offering a restricted network in return for a reduced premium.

They can remove hospitals which are known for price gouging, and in return pass the savings on to the policyholder.

Whilst restricted networks are not widely used, we anticipate an increase in them going forward as health insurance companies look to control costs.

LEVERAGE HOME COUNTRY COVERAGE SUCH AS MEDICARE

For people with healthcare provision in their home country, there is the option to return home for medical care.

We strongly recommend that even if this is the case, you have a solution in place in the event of an accident or emergency whereby you could not fly.

There are numerous health conditions where you will not be fit to fly.  Getting yourself into a position where you are fit to fly can be very expensive. At Seek2Insure we recommend minimum coverage in Thailand of 10 million THB per year.

SUMMARY

Controlling overall health insurance premiums is something which we as policyholders are unable to impact.

However, as we have shown above there are numerous steps which you can take in order to reduce your personal premium.

If you are looking to save money on your health insurance, and would like a free consultation to assess your current provision, please contact us today.