Mumbai, Nov 28: Mercer Marsh Benefits, a combination of experts from Marsh McLennan businesses, today released its 2026 Health Trends report with India-specific insights based on a survey of 268 insurers across 67 markets. In India, medical trends for employer-provided health plans, the year-over-year cost increase per person for health claims, is forecast at 9.9 percent for 2026, unchanged from 2024 and 2025. This near double-digit trend continues to be in line with global medical inflation data.
The report finds that cancer, diseases of the circulatory system and musculoskeletal conditions remain the top causes of claims by amount spent. Financial pressures on employer-sponsored health plans, including higher utilization and more costly therapies, are intensifying. Occupational risks such as job demands, poor ergonomics and exposure to noise and air pollution are also contributing to rising claim costs in India’s urban centres.
Sanjay Kedia, Chief Executive Officer, Marsh McLennan India, President and CEO, Marsh India, “With India’s medical inflation trending at double digits in line with the global trend due to medical advancement, organizations should adopt long-term, sustainable benefits strategies with effective reviews of risk control measures such as co-pay and accelerated investment in preventive and primary healthcare through OPD insurance solutions. By prioritizing early intervention and routine care, companies can better manage rising healthcare costs while enhancing employee wellbeing. Strategic investments in preventive care and condition management programs and effective network management initiatives to support use of high-quality, cost-effective providers enable organizations to bend the cost curve without compromising the quality of care.
Prawal Kalita, Managing Director of Mercer Marsh Benefits India said, “The top reasons for high medical inflation globally as well as India includes rising plan utilisation with ageing population, delay in primary care, higher cost of treatment due to advancement in medical therapies and rising incidences of cancer, cardiac and respiratory conditions. Employers may resort to cost-shifting, that may offer short-term relief, but it risks reduced access, delayed care and higher claims over time. Our advocacy to clients is to therefore evaluate benefits optimization, work with partners on managing high-cost claims, achieve more from effective network management, focus on primary care to ensure early detection & establish clear pathways to access quality care.”
The report underscores ongoing gaps in benefits coverage that are relevant to India, particularly for mental health, reproductive health and support for an aging workforce. Globally, half of insurers typically include mental health counselling, about a third include coverage for mental health medication, and just a quarter include mental health screenings, signalling significant room to expand practical access. As individuals delay retirement and stay in the workforce longer, targeted benefits, including preventive care such as cancer screenings and routine primary care visits, help employees remain healthy, engaged and productive while reducing future costs.
Looking ahead, the report finds that 76 percent of insurers globally are concerned about inefficient and wasteful care driving unaffordability. In Asia, high-cost claimants are the top affordability concern, cited by 87 percent of insurers, followed by inefficient care, technological advancements and aging population needs. Many employers are expected to prioritize cost management initiatives, including stronger governance for catastrophic claims, clinical pathway compliance, second-opinion requirements and site-of-care optimization. Adopting innovative cost-containment strategies and proactive risk management will help Indian employers maintain affordable and effective health benefits while strengthening workforce resilience.