The United States is not alone in anticipating a substantial increase in health plan costs next year. In its latest report, Aon projects a worldwide price hike of nearly 10%, including an 8.8% rise in North America.
“The 2026 Global Medical Trend Rates Report arrives at a time of economic and geopolitical uncertainty, including global tariffs,” said Kathryn Davis, a global benefits vice president for the professional services firm. “Even as global inflation cools in some markets, health care costs remain under significant pressure. Rising health care costs have become a pervasive business challenge, requiring organizations to proactively plan and adopt predictive analytics alongside innovative cost-management strategies to stay ahead. These approaches are essential for navigating ongoing volatility and supporting long-term benefit strategy.”
The report identified the top three medical conditions that are driving cost increases:
- Cardiovascular disease remains the leading condition expected to influence plan costs in 2026. This trend is consistent across all regions, with more than 20 countries identifying it as the most significant condition.
- Cancer and tumor growth rank among the top five cost-driving condition in every region in every region, with 20 countries identifying it as having the greatest impact. The most commonly diagnosed cancers globally include lung, breast, colorectal and prostate cancers.
- High blood pressure and hypertension continue to be leading risk factors for numerous other conditions and are consistently cited as key drivers of medical claims. Eighteen countries identify them as the most serious conditions.
“In addition to macroeconomic global factors, trends in the health care space are also contributing to persistently high medical inflation rates compared to historical norms,” Davis said. “These include higher utilization rates, the adoption of new, advanced technologies and a growing demand for private health care services.”
As a result, employers increasingly are focused on cost containment and management strategies. These include negotiating with insurance carriers, implementing wellbeing initiatives, introducing flexible benefits and increasing employee cost sharing. Among these, wellbeing initiatives remain the most widely adopted measure, reported by 86% of countries.
“As organizations navigate rising health care costs, mitigation strategies are essential to sustaining workforce wellbeing and business resilience,” said Michael Pedel, head of global benefits at Aon. “By proactively leveraging data and analytics and implementing targeted strategic interventions, employers can better manage their investment, bring to life wellbeing strategies and foster healthier, more-engaged teams. This holistic approach enables organizations to achieve long-term sustainability of costs, adapt to evolving employee needs and mitigate risk.”
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