India to outpace global average with 2026 medical trend at 11.5 pc: Report

NEW DELHI: The employee medical plan costs in India are expected to rise by 11.5 per cent in 2026, down from 13 per cent projected for 2025, according to a report on Thursday.

The report by global professional services firm Aon showed that this moderation signals a stabilisation after two years of sharp increases. It also aligns with a broader trend across the Asia Pacific, where the average medical trend rate is expected to be 11.3 per cent.

Medical trend rates represent the annual percentage increase in medical plan costs per employee, both insured and self-insured. These figures help organisations budget and adapt their benefits strategies to ensure sustainability in a rapidly evolving healthcare landscape.

The country’s medical trend rate remains above the global average of 9.8 per cent, but the pace of growth is slowing due to moderated utilisation.

Notably, the report showed that cardiovascular diseases, gastrointestinal conditions, and cancer will continue to be the top drivers of medical costs, with hypertension, high cholesterol, and poor nutrition as leading risk factors.