India’s employer health plan costs to rise nearly 10% in 2026, says Mercer Marsh report

Rising Costs of Employer Health Plans in India for 2026

Mercer Marsh Benefits forecasts that medical costs for employer-sponsored health plans in India will increase by approximately 9.9% in 2026. This projection reflects ongoing upward trends in healthcare expenses.

Key Factors Behind Cost Increase

Inflation in medical services: Price increases in hospitalization, diagnostics, and pharmaceuticals are significant contributors.
Increased utilization: More employees are opting to use health benefits, especially post-pandemic.
Chronic diseases and lifestyle changes: Rising prevalence of chronic conditions such as diabetes and heart disease adds to claim costs.
Advancements in treatment: Cutting-edge therapies and technology raise the overall spend in health plans.

Impact on Employers

Employers in India should anticipate higher premiums and potentially adjust their benefits strategies to manage costs. They might explore wellness programs and preventive care initiatives to mitigate these increases.

“Medical inflation continues to be a key driver of rising health plan costs in India, requiring proactive management and innovative solutions from employers,” says Mercer Marsh Benefits.

This report clearly indicates a near 10% rise in employer health plan costs in India for 2026, driven by medical inflation, increased claim frequency, and evolving health challenges.

CNBCTV18 — 2025-11-28

Rising Costs of Employer Health Plans in India for 2026

Key Factors Behind Cost Increase

Impact on Employers

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