As medical costs rise, how to weigh health insurance options

Monica Yunitasari exercises regularly, attends gym and Pilates sessions, watches her diet and usually goes to bed before 10 p.m. She still decided that a healthy lifestyle alone could not provide enough protection against unexpected medical risks.

The 33-year-old said the turning point came three years ago, after several of her friends died while still relatively young. Some had health insurance, but Monica felt their coverage might not meet her needs in a critical situation.

“Honestly, I was very shocked to learn that several friends had died at a young age. It made me realize that, besides staying healthy, we also need protection that is truly comprehensive and reliable when we need it,” Monica said in a statement issued on Saturday, Sept. 5, 2026.

Her experience led her to purchase health insurance as a financial safety net. The decision has taken on added importance as medical costs continue to rise. The Mercer Marsh Benefits Health Report 2026, published in November 2025, projected Indonesia’s medical inflation at 17.8% in 2026. That figure is well above the Asian average of about 11% to 12% and seven times Indonesia’s general inflation rate.

The report attributed the increase to higher medicine prices, greater use of medical technology and Indonesia’s dependence on imported pharmaceutical ingredients and medical equipment, which are also affected by exchange-rate fluctuations.

At PRUPriority Hospitals, the average cost of appendicitis surgery increased from about 55 million rupiah in 2023 to 69 million rupiah in 2025. During National Customer Day, Prudential Indonesia Chief Health Officer Yosie William Iroth said insurers need to understand customers’ needs and provide protection that remains relevant throughout their lives.

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Honestly, I was very shocked to learn that several friends had died at a young age. It made me realize that, besides staying healthy, we also need protection that is truly comprehensive and reliable when we need it.