Increasing Health Protection Awareness, Health Insurance Claims Exceed Rp 20 Trillion

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Indonesia is witnessing a notable surge in health insurance claims, with the Indonesian Life Insurance Association (AAJI) projecting a significant milestone. The association estimates that health insurance claims are poised to breach the Rp20 trillion mark for the entire year 2023, showcasing a robust increase from the Rp15.2 trillion recorded during the period of January to September 2023. This upward trend highlights a growing awareness among the populace regarding the imperative need for health protection.

In a strategic move to fortify the health insurance industry in Indonesia, the Financial Services Authority (OJK) and the Ministry of Health of the Republic of Indonesia have forged a collaborative alliance.

This collaborative effort aims to synergize their roles and functions, reinforcing the health industry’s ecosystem by leveraging support from the financial services sector. This includes the provision of high-quality health insurance products and services.

Budi Tampubolon, Chairman of the Board of AAJI, anticipates a further increase of approximately Rp5 trillion in the last quarter of 2023. Budi projects that health insurance claims for each quarter of the previous year amounted to Rp5 trillion.

“Estimating for the entire year of 2023, there will be an additional Rp5 trillion, potentially reaching around Rp20 trillion,” revealed Budi during a recent Media Workshop held in Jakarta on Thursday (25/1/2024).

While expressing contentment with the heightened awareness among the public regarding health protection, Budi also emphasizes the need for vigilance in the face of escalating health insurance claims.

“On one hand, we are pleased to witness an increased awareness of the public in seeking health protection. On the other hand, we must also be mindful of the simultaneous rise in health insurance claims,” he elucidated.

Budi further delves into the global scenario, pointing out that medical inflation in several countries, not limited to Indonesia, is experiencing a much higher double-digit rate compared to economic inflation. This underscores a long-term trend where healthcare costs are anticipated to progressively rise.

“This indicates that over time, healthcare costs are likely to become more expensive. It will inevitably become a point of consideration for all of us,” Budi added.

In light of these developments, Budi expresses hope that the collaborative efforts between OJK and the Ministry of Health will lead to a more concerted and serious approach in addressing these issues.

Mahendra Siregar, Chairman of the OJK Board of Commissioners, shares his optimism that this synergy will not only improve the health ecosystem but also bring about efficiency in healthcare services to the public. Mahendra emphasizes that this collaboration aligns strategically with OJK’s objective of enhancing public trust in the national insurance sector.

This aligns with the Roadmap for the Development and Strengthening of Insurance in Indonesia 2023–2027. The roadmap places particular emphasis on optimizing the support of the insurance sector within the health industry ecosystem in Indonesia.