Employee medical plan costs in India are projected to rise by 11.5% in 2026, remaining above the global average of 9.8%, according to the latest Global Medical Trend Rates Report released by Aon. While costs continue to climb, the report notes a moderation in growth, supported by stabilising healthcare utilisation across markets. The report highlights that cancer and cardiovascular-related conditions remain among the most significant drivers of medical costs globally and in India. In the Asia-Pacific region, including India, improved access to advanced diagnostics and therapies is enhancing patient outcomes but also increasing utilisation, placing added pressure on healthcare systems and employer-sponsored medical plans.
Key factors influencing India’s medical trend rate include the growing use of advanced prescription and specialty medicines, particularly biologics, a rising chronic disease burden, higher healthcare utilisation, and wider adoption of medical technologies. Constraints such as shortages of quality healthcare infrastructure and skilled professionals are further pushing up service costs, while higher claims are driving insurance premiums upward. Looking ahead, cardiovascular disease, hypertension and cancer are expected to remain the leading cost drivers in 2026, broadly in line with 2025 trends.
In Kolkata, employers are increasingly responding to rising medical costs by reworking benefit structures, strengthening hospital networks, and promoting preventive healthcare initiatives. Corporates in the city are also expanding telehealth access and wellness programmes to manage long-term healthcare expenses while maintaining employee coverage quality.