India’s medical plan costs projected to rise 11.5% in 2026; above global average, says Aon

Aon projects 11.5% medical trend rate for India in 2026

Employee medical plan costs in India are projected to rise by 11.5% in 2026, down from 13% projected for 2025, according to Aon’s India findings from its 2026 Global Medical Trend Rates Report released on December 11, 2025. Even with moderation, the projected rate remains above the global average cited in the report.

Medical trend rates refer to the annual percentage increase in medical plan costs per employee across insured and self-insured arrangements. For employers, the figure is a planning anchor: it shapes budgeting for group health covers, pricing negotiations and the design of benefit programmes.

What’s driving costs

Aon highlighted cardiovascular diseases, gastrointestinal conditions and cancer as leading medical conditions expected to drive medical plan costs. The report also pointed to risk factors such as hypertension, high cholesterol and poor nutrition, and noted the role of advanced prescription and specialty medications and newer medical technologies—particularly biologics—in raising cost pressure.

Beyond disease burden, structural constraints—such as shortages of quality healthcare infrastructure and skilled professionals—can raise service costs and restrict access. Higher claims and escalating medical expenses can also push insurance premiums upward, creating a feedback loop for employers and employees.

How employers may respond in 2026

The report notes that employers are increasingly leaning on flexible benefits, data-driven cost-containment measures and wellbeing programmes to manage rising costs while maintaining workforce health. In practice, that can include stronger preventive screenings, disease management programmes, tighter claims analytics and improved provider networks.

Even though the projected increase is lower than the prior year’s estimate, the level is still high enough to keep health benefits near the top of HR and CFO agendas in 2026—especially for companies balancing wage pressures, retention needs and healthcare affordability.