AIA, MediCard tie-up reflects demand for broader employee coverage

Insider Spotlight

• Employers are seeking simpler ways to expand workforce protection beyond standard HMO coverage
• Rising out-of-pocket healthcare costs and financial vulnerability are driving demand for integrated benefits
• AIA Philippines and MediCard combined life insurance and HMO services into a single employee benefits offering
  
  
  

Growing financial pressures on Filipino workers are prompting employers to rethink employee benefits beyond traditional healthcare coverage, as rising medical expenses and income risks increase the need for more comprehensive workplace protection. 

Against this backdrop, insurers are introducing integrated offerings that aim to simplify benefits administration while expanding financial safeguards for employees.

Why it matters

AIA Philippines, formerly Philam Life, and its healthcare arm, MediCard, introduced Group Life + HMO, an employee benefits solution that combines health maintenance organization coverage with life insurance and disability protection.

The companies said the offering is designed to help employers provide broader protection through a single provider relationship, enrollment process, and billing arrangement.

Beyond standard HMO coverage, the package includes yearly renewable term life insurance, total and permanent disability protection, and accidental death, disability and dismemberment benefits, providing financial assistance in the event of death, disability, or serious accidents.

The integrated package aims to balance affordability and ease of administration through a single healthcare and insurance touchpoint, with customizable premiums, simplified onboarding, and coverage available for organizations with as few as five employees. 

By the numbers

• Out-of-pocket healthcare spending among Filipinos reached P15,223 per person in 2025, up 14 percent from the previous year
• AIA Philippines' 2025 Rethink Healthy study found 65 percent of Filipinos rely on personal savings during unexpected events
• The company also cited research showing 88 percent of Filipinos identify themselves as the sole or shared breadwinner in their household

Mental wellness interventions

MediCard chief executive officer Julian Mengual explained during the media launch that the health care provider has redesigned its mental health solution to emphasize early intervention and preventive care through a digital platform.

Employees can confidentially assess their mental well-being in a "nonthreatening" way before being directed to appropriate support, including structured monthly wellness programs tailored to specific industries.

The program is designed to address concerns before they develop into more serious physical health issues, while maintaining employee anonymity and giving employers aggregated insights on how mental health interventions affect healthcare costs, employee satisfaction, and workplace trust.

What they're saying

“Healthcare has always been a fundamental part of employee care, but today's workforce needs more than access to medical benefits alone. While PhilHealth and other healthcare programs continue to strengthen access to care for Filipinos, many families still face financial pressures and may pay out-of-pocket when unexpected health or life events arise,” Mengual said.  

“Employers want to know they're supporting their people through life's unforeseen moments. By helping protect employees from both medical costs and the wider financial impact of life's uncertainties, employers can provide more meaningful support for their people and their families,” he added. 

“As an employer ourselves,we invest quite heavily in the well-being of our employees because we know that if every employee is well, then they just come to work whole and full and are able to be more focused and more productive," AIA chief marketing officer Melissa Henson said. 

"It’s important to come up with solutions that also help and strengthen all of these areas more holistically. And enable our corporate partners, our corporate clients to be able to offer solutions, benefits [and] propositions that can help their employees address all of those concerns as well,” she added.

Management of chronic lifestyle diseases

Complementing its insurance and healthcare offerings, MediCard also highlighted its enhanced Livewell Lifestyle Management Program, a long-term care pathway designed to help members manage chronic conditions such as diabetes, hypertension, and cardiovascular disease.

Developed with Singapore-based health technology and analytics company Amplify Health, the program is powered by the AMPED app, which connects members with doctors, nutritionists, health coaches, and support services anytime and anywhere.

The bigger picture

The companies said the solution is particularly relevant for micro, small, and medium enterprises, which account for 99.5 percent of Philippine business establishments and employ more than 60 percent of the country's workforce. 

For as few as five employees,  annual premiums for employees range from P56.80 to P284.00, depending on coverage (from P20,000 to P100,000).

The collaboration between AIA Philippines and MediCard reflects a growing recognition that employee well-being extends beyond healthcare alone. 

As employers look for ways to strengthen their employee value proposition without adding administrative complexity, integrated solutions that combine healthcare and financial protection are becoming an increasingly important part of workforce strategy. —Vanessa Hidalgo| Ed: Corrie S. Narisma