NEW DELHI
India’s employee medical plan costs are expected to grow by 11.5 per cent in 2026, slightly lower than the 13 per cent rise projected for 2025, according to a new report released on Thursday by global professional services firm Aon. The report says this decline marks the beginning of a steady phase after two years of sharp increases across health-related expenses.
Medical trend rates show how much the cost of employee health plans—both insured and self-insured—goes up every year. These numbers help companies plan their budgets and design benefits that remain affordable. While India’s projected rate is higher than the global average of 9.8 per cent, experts note that the pace of growth is slowly easing because people are using healthcare services more carefully.
The report identified cardiovascular diseases, gastrointestinal issues, and cancer as the biggest contributors to rising costs. Risk factors such as hypertension, high cholesterol, and unhealthy diets continue to push expenses upward.
Ashley D’Silva, Head of Health Solutions for India at Aon, said employers are responding by adopting flexible benefit plans, using cost-saving tactics, and introducing wellbeing programmes. He added that using data and working closely with insurers can help companies understand risks better and support a healthier workforce.
Key reasons for India’s rising medical trend include advanced medicines, new medical technologies, especially biologics, and the growing burden of chronic diseases. A shortage of skilled professionals and reliable medical infrastructure also pushes treatment costs higher. Increasing insurance premiums, driven by larger claims and expensive procedures, are worsening the pressure on both employers and employees.
The report also noted that more companies are choosing flexible benefits and data-driven strategies to manage costs. It recommends investing in preventive care and focusing on practical improvements as India’s health insurance sector enters a new phase.
