Medical cost growth in India is expected to moderate to 10.1 per cent in 2027 from 11.5 per cent in 2026, but healthcare expenses will continue to rise significantly faster than general inflation, according to a report released by global professional services firm Aon plc on Wednesday.
Aon’s 2027 Global Medical Trend Rates Report estimates India’s general inflation at 4 per cent in 2027, while the net medical trend rate, after adjusting for inflation, is projected to decline from 7.4 per cent in 2026 to 6.1 per cent in 2027. India’s projected medical cost growth remains above the Asia-Pacific average of 9.7 per cent.
Cardiovascular diseases remain the leading driver of medical claims, followed by ENT, lung and respiratory disorders and cancer. High blood pressure, physical inactivity and poor nutrition are also identified as major risk factors.
Aon said employers could manage rising healthcare expenses through preventive healthcare, data-driven benefit designs, flexible benefits and employee wellness programmes. Globally, 87 per cent of employers are expected to adopt wellbeing initiatives in 2027, while two-thirds are likely to use flexible benefits.
In Kolkata, the projected increase in medical costs could put additional pressure on employers across the city’s corporate, manufacturing, services and MSME sectors, increasing the importance of sustainable employee health insurance and preventive healthcare programmes.
Aon executives said organisations must use workforce data and analytics to balance healthcare affordability with access to quality treatment, while supporting employee productivity and retention.