New Delhi, Dec 11 (NationPress) The costs associated with employee medical plans in India are projected to increase by 11.5% in 2026, a reduction from the 13% increase anticipated for 2025, as outlined in a recent report released on Thursday.

The analysis conducted by the global professional services firm Aon indicates that this adjustment reflects a trend towards stabilization following two years of significant hikes. This trend is also in line with a broader pattern observed throughout the Asia Pacific region, where the average medical trend rate is expected to reach 11.3%.

Medical trend rates denote the annual percentage growth in medical plan costs per employee, encompassing both insured and self-insured individuals. These statistics assist organizations in budgeting and refining their benefits strategies to ensure sustainability amid a rapidly changing healthcare environment.

While India's medical trend rate remains above the global average of 9.8%, the rate of growth is decelerating due to a decrease in utilization.

Importantly, the report identifies cardiovascular diseases, gastrointestinal issues, and cancer as the primary contributors to medical expenses, with hypertension, elevated cholesterol levels, and inadequate nutrition identified as significant risk factors.

“The healthcare framework in India is advancing, with employers increasingly embracing flexible benefit plans, cost control measures, and wellness programs to tackle rising costs,” remarked Ashley D’Silva, head of Health Solutions for India at Aon.

“Through effective data utilization and collaborations with insurers, businesses can better predict risks and foster a healthier, more efficient workforce,” D’Silva emphasized.

Factors influencing the medical trend rate in India include the rise of advanced prescription and specialty medications, breakthroughs in medical technology—particularly biologics—and increasing pressure from chronic disease burdens, higher healthcare utilization, and technological advancements.

A shortage of quality healthcare infrastructure and skilled professionals also drives up medical service costs, rendering healthcare less accessible. Escalating insurance premiums, driven by rising claims and increasing medical costs, further complicate the situation.

The report also pointed out that employers in India are increasingly prioritizing flexible benefits plans, enabling employees to customize their healthcare options to align with their unique needs.

Furthermore, they are implementing data-driven cost-control strategies, utilizing analytics to optimize healthcare expenditures and secure better outcomes.

The report suggests that businesses should invest in preventive health strategies and focus on genuine impact rather than traditional methods, as the medical insurance landscape in India is evolving into a new phase.