APAC medical plan costs to rise 11.3% in 2026

A third of APAC markets expect lower medical trend rates.

Aon expects employee medical plan costs in Asia-Pacific (APAC) to rise 11.3% in 2026, showing signs of stabilisation after two years of steep increases. 

The global average medical trend rate is forecast at 9.8%.

“The challenge and opportunity for employers lies in moving from reactive cost control to proactive health strategy. As employers across the region navigate workforce transformation, building resilient and sustainable employee benefits programs will be critical to managing the wellbeing of their workforces,” Tim Dwyner, head of Human Capital for APAC, Aon said in a media release.

The firm said that major markets such as China, India, Singapore, the Philippines and Vietnam are projecting smaller increases compared with 2025. 

China’s rate is seen at 7.8% from 8% last year, India at 11.5% from 13%, Singapore at 13% from 14%, the Philippines at 14% from 15%, and Vietnam at 12.2% from 12.9%.

Aon noted that about a third of APAC markets expect lower medical trend rates due to moderated utilisation and stronger wellbeing initiatives. 

However, the rest continue to face higher pressure from chronic diseases, greater healthcare use and medical technology costs.

Cardiovascular diseases, gastrointestinal conditions and cancer remain the main drivers of medical plan expenses across the region. 

Employers are responding by introducing flexible benefits, cost containment measures and wellbeing programmes to manage rising medical insurance costs.

The findings come from Aon’s 2026 Global Medical Trend Rates Report, which draws from insights across more than 100 offices advising on employer-sponsored medical plans.