Mercer Marsh Benefits has released its 2026 Health Trends report with India insights based on responses from 268 insurers across 67 markets. The report forecasts a 9.9 per cent medical trend for employer-provided health plans in India for 2026. The rate reflects the year-over-year cost increase per person for health claims and remains unchanged from 2024 and 2025. According to the report, India’s trend is aligned with global medical inflation.
The report identifies cancer, circulatory system diseases and musculoskeletal conditions as the top claim categories by spend. Mercer Marsh Benefits stated that financial pressures on employer-sponsored plans are increasing because of higher utilisation and increased cost of therapies. The report also notes the impact of occupational risks, including job demands, poor ergonomics and exposure to noise and air pollution, particularly in urban settings.
Sanjay Kedia, Chief Executive Officer, Marsh McLennan India, and President and CEO, Marsh India, said, “With India’s medical inflation trending at double digits in line with the global trend due to medical advancement, organisations 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 prioritising 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 organisations to bend the cost curve without compromising the quality of care.”
Prawal Kalita, Managing Director, 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 optimisation, 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 highlights coverage gaps relevant to India, including mental health, reproductive health and support for ageing employee populations. Mercer Marsh Benefits states that half of insurers globally cover mental health counselling, one-third offer medication coverage and one-quarter include mental health screening.
The report shows that 76 per cent of global insurers are concerned about inefficient and wasteful care affecting affordability. In Asia, 87 per cent of insurers cited high-cost claimants as the leading affordability concern, followed by inefficient care, medical technology advancements and demands associated with ageing populations. The report indicates that employers are likely to prioritise cost management measures including governance frameworks for catastrophic claims, clinical pathway adherence, second-opinion protocols and site-of-care alignment.