Mumbai: Medical costs in India are expected to slow to 10.1 per cent in 2027, down from 11.5 per cent in 2026, according to the 2027 Global Medical Trend Rates Report by Aon.
The report highlighted that while healthcare cost growth is slowing, it remains well above India’s projected inflation rate of 4 per cent.
After inflation, the net medical trend rate is expected to fall from 7.4 per cent in 2026 to 6.1 per cent in 2027, meaning healthcare costs will continue to rise materially faster than general prices.
According to the report, India’s projected medical trend rate remains above the Asia Pacific average, which is expected to decline from 11.3 per cent in 2026 to 9.7 per cent in 2027.
India’s rate is projected to be higher than China’s 6 per cent, while remaining below several markets including Singapore (14.7 per cent), Thailand (11.7 per cent) and Indonesia (17.3 per cent ).
As per Aon, chronic health conditions remain among the most significant drivers of medical costs across the region with cardiovascular disease emerging as the leading driver of medical claims, followed by ENT/lung and respiratory diseases and cancer.
High blood pressure, physical inactivity and poor nutrition are also among the key risk factors expected to contribute to future healthcare claims.
Ashley DSilva, Head of Health and Wealth Solutions, India, Aon said, “Moderation in India’s medical trend rate reflects easing cost pressures and improving conditions across many healthcare systems globally. However, long-term structural challenges persist, including chronic disease, growing demand for healthcare services and greater use of advanced treatments.
“With local medical costs still rising at more than twice the rate of inflation, benefits budgets will remain under pressure. Employers need proactive, data-led strategies that combine their own workforce and claims insights with market benchmarks to optimise plan design, strengthen provider networks and support workforce resilience.”
