Rising use of minor day procedures is pushing up employee medical insurance costs in Hong Kong, according to the latest Hong Kong Employee Health Insurance Index released by the College of Professional and Continuing Education of the Hong Kong Polytechnic University (PolyU CPCE) and benefits consultancy GUM.

The second-quarter 2025 update shows inpatient plan utilisation has reached a new high, with the Utilization Index jumping 13.9% year on year. Minor day procedures now account for 82% of inpatient plan cases, driving higher overall use despite their relatively lower unit costs.

Outpatient utilisation has stabilised after post-pandemic growth, but expenses are climbing. The outpatient expense index rose by 12.32%, with the average cost per visit increasing to HK$598 (US$77). In contrast, the inpatient expense index fell 6.9%, as average claims dropped to HK$20,342 per case.

Specific procedures are contributing to the trend. Viral wart-related treatments increased 13% year on year, while endoscopy procedures rose 7.1%. Ingrown toenail treatment entered the top 10 inpatient diagnoses for the first time, with an average cost of roughly HK$17,000 per case.

Premiums are following utilisation trends. The overall premium index rose 5.0%, and average annual premiums are expected to reach about HK$11,078 per insured person in 2026 if current trends persist.

PolyU CPCE warned that without changes to benefit design and cost management, private health insurance could become unaffordable for many employers.

Angel Wang, Head of Distribution at AXA Global Healthcare China, recently spoke to ITIJ about how China’s medical insurance sector was adapting to meet growing healthcare expectations amid rising incomes.

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