India Pharma Outlook Team | Thursday, 11 December 2025
Aon plc, a leading global professional services firm, today released the India findings from its 2026 Global Medical Trend Rates Report.
The report projects that employee medical plan costs in India will rise by 11.5 percent in 2026, down from 13 percent projected for 2025.
This moderation signals a stabilisation after two years of sharp increases, aligning with a broader trend across Asia Pacific, where the average medical trend rate is expected to be 11.3 percent.
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.
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India’s medical trend rate remains above the global average of 9.8 percent, but the pace of growth is slowing due to moderated utilisation. Cardiovascular diseases, gastrointestinal conditions and cancer continue to be the top drivers of medical costs, with hypertension, high cholesterol and poor nutrition as leading risk factors.
“India’s healthcare landscape is evolving, with employers increasingly adopting flexible benefit plans, cost containment strategies and wellbeing programs to manage rising costs,” said Ashley D’Silva, head of Health Solutions, India at Aon. “By leveraging data and partnering with insurers, businesses can better anticipate risks and support a healthier, more productive workforce.”
Trends Impacting Medical Trend Rate in India:
Conditions Behind the Trend Rate
The leading medical conditions expected to influence costs in 2026 in India remain largely consistent with the conditions of 2025:
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How Businesses Are Responding
Employers in India are placing greater emphasis on offering flexible benefits plans, which allow employees to tailor their healthcare options to better suit their individual needs. They are also adopting data-driven cost containment strategies, leveraging analytics to optimise healthcare spending and achieve improved outcomes.
Organisations are also expanding preventive health initiatives by increasing access to dietetic services and weight management solutions and by promoting wellness programmes aimed at reducing long-term medical expenses. There is a growing focus on hospital network optimisation, with employers partnering with efficient, high-quality healthcare providers and offering services such as telehealth, virtual mental wellbeing support and physiotherapy.
“The medical insurance market in India is transitioning into a new phase and businesses must be ready to deploy strategies that will deliver value,” said Ariz Rizvi, head of health risk management at Aon in India. “To manage costs sustainably, businesses need to invest in preventive wellbeing strategies that prioritize real impact over traditional approaches focused solely on employee engagement.”
“Businesses must implement strategies that drive measurable outcomes — such as expanding access to weight management programs, dietetic services and wellness initiatives that can proactively address the unique health risks facing their workforce and create a culture where employee wellbeing is not just an add-on, but a core component of their value proposition in a rapidly evolving landscape. By harnessing both internal and external data, organizations can better anticipate risks and empower a healthier, more productive workforce,” added Rizvi.
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