Medical costs in India could rise by 10.1 percent in 2027. The rate of increase is slightly lower than the year before, but it will still be more than double general inflation, according to a new report by the global professional services firm Aon.
The report says medical costs in India rose by 11.5 percent in 2026 and could rise by 10.1 percent in 2027. General inflation over the same period is expected to be 4 percent, meaning medical costs will rise much faster than the overall prices of goods and services.
The report names heart disease as the main driver of medical costs, followed by ear, nose and throat (ENT) conditions, lung and respiratory illness, and cancer. It also lists high blood pressure, physical inactivity and poor nutrition as important risks that will push costs up in future.
According to Aon, the growing burden of chronic and non-communicable diseases in India is affecting the health care sector and the medical benefits employers provide. Although cost growth has eased a little, demand for treatment, specialist consultations and advanced medicines is rising. Prevention, early diagnosis and effective health benefits are therefore essential, the report says.
Costs rising at more than twice inflation
According to Aon’s “2027 Global Medical Trend Rates Report”, medical costs in India could rise by 10.1 percent in 2027, against 11.5 percent in 2026. A slower rate does not mean costs are falling; they will keep rising, only more slowly than before.
The report puts India’s forecast general inflation for 2027 at 4 percent. Adjusted for inflation, the real rise in medical costs could be 6.1 percent, against 7.4 percent in 2026.
Ashley D’Silva, head of health and wealth solutions at Aon India, said: “Locally, medical costs are still rising at more than twice the rate of inflation. Pressure on budgets set aside for health benefits will therefore continue.”
Across the Asia-Pacific region, medical costs are forecast to rise by 9.7 percent on average in 2027. India’s likely rate is above that average. The rate could be 6 percent in China, 14.7 percent in Singapore, 11.7 percent in Thailand and 17.3 percent in Indonesia.
Heart disease, respiratory illness and cancer drive costs
A central observation on India in the report is that a large share of medical costs comes from chronic and serious disease. Aon’s India data names heart disease as the main cause of medical claims, followed by ENT, lung and respiratory illness, and cancer.
Treating these conditions can require long courses of medicine, specialist consultations, hospital stays, tests and costly procedures, so they put long-term pressure on medical costs.
The report’s global analysis also identifies heart disease as the main cause of employer health care costs. Cancer is the second biggest cause worldwide, and high blood pressure is named both as a driver of costs and as a risk factor for various chronic diseases.
High blood pressure, inactivity and obesity raise the risk
The report names high blood pressure, physical inactivity and unhealthy eating as important risks that will push medical costs up. The global analysis also highlights obesity as a growing cause of chronic disease.
According to the report, obesity ranked fifth among global health risks two years ago and has risen to third in the 2027 assessment. As obesity spreads, rates of diabetes and other chronic diseases are also rising, which could increase demand for long-term care and weight management services.
Catherine Davis, data and analytics leader in Aon’s global benefits division, said heart disease, cancer and high blood pressure remain the main drivers of medical costs. But as obesity and diabetes rates climb, employers could face more pressure from the cost of treating chronic disease in the coming years.
GLP-1 drugs add new pressure
Growing use of drugs such as GLP-1 receptor agonists, used for diabetes and weight control, has also become a new factor in medical costs.
Aon’s global report says these drugs are available in about 70 percent of the countries surveyed, and in about half of those they are covered by employer medical benefits. In some markets the drugs could account for 1 to 10 percent of the rise in medical costs, more than 3 percent on average.
The report also names diabetes as one of the main causes of medical costs. In 54 of the markets surveyed, diabetes was among the top five conditions driving costs.
Used as doctors advise, these drugs can bring important health benefits. But wider use is raising questions about price, insurance cover and long-term availability. Aon says employers should offer these drugs while weighing both medical need and the cost of health care.
The report gives no separate estimate of how much GLP-1 drugs could raise medical costs in India, so the global figures cannot be read as a direct effect on Indian employers’ health costs.
Prevention and early diagnosis to contain costs
Aon’s report says employers are putting more weight on preventive care and employee wellbeing to contain long-term medical costs.
Worldwide, 87 percent of the countries surveyed said they would use employee wellbeing initiatives in 2027 as a strategy to contain medical costs. About two-thirds plan to introduce flexible health benefits to control costs and give employees more choice.
Ariz Rizvi, head of health risk management at Aon India, said: “India’s workforce is diverse and changing fast, so one-size-fits-all health benefits are not working.”
He added that investing in preventive care, flexible benefits and employee wellbeing can help companies build lasting, sustainable health programmes, while also raising productivity and capability at work.
The report says employers in India should pay more attention to regular health check-ups, screening for high blood pressure and diabetes, preventive medical advice, mental and physical wellbeing programmes, and support for employees with chronic illness.
The forecast 10.1 percent rise in medical costs in India in 2027 points to continued cost pressure in health care. Heart disease, respiratory illness and cancer, along with high blood pressure, inactivity, poor diet, obesity and diabetes, could add to it. The report therefore advises a focus on early diagnosis, prevention and effective management of chronic disease to contain medical costs.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report