Employer-sponsored health benefits costs are set to increase by 9.8 per cent in 2026, according to a new report by Aon.
The report pointed to a return to single-digit growth for the first time since 2023, but also underscores the reality that price inflation, advanced medical technologies, increased benefits utilization and rising prescription drug costs are keeping pressure on employers worldwide.
Read: Median U.S. health benefits cost trend increasing to 9% in 2026: survey
Regionally, North America (9.3 per cent) and Asia-Pacific (11.3 per cent) are set to see the biggest increases, while Europe is projected to dip slightly to 8.2 per cent. Latin America and the Caribbean are also expected to see a modest slowdown (10.3 per cent from 10.7 per cent), while the Middle East and Africa remain the costliest regions, though forecasts suggest a small decrease to 15.3 per cent.
Cardiovascular disease continues to top the list of cost drivers across every region, with cancer, hypertension and high blood pressure also leading claims activity in more than 20 countries. Ageing populations in Europe, Asia-Pacific and Latin America are adding another layer of strain, the report noted.
Employers are leaning into cost management by negotiating with carriers, introducing flexible benefits and, most notably, expanding well-being programs in 86 per cent of countries.
Read: U.S. employer health-care costs to surpass $17,000 per employee in 2026: report
“As organizations navigate rising healthcare costs, mitigation strategies are essential to sustaining workforce well-being and business resilience,” said Michael Pedel, head of global benefits at Aon, in a press release. “By proactively leveraging data and analytics and implementing targeted strategic interventions, employers can better manage their investment, bring to life well-being strategies and foster healthier and more engaged teams.”