Canadian benefits plan sponsors are anticipating an average medical trend rate of 8.3 per cent in 2026, up from 7.4 per cent in 2025, according to a new report by Aon.
The report, which analyzed data from plan sponsors across 112 countries, found medical plan costs worldwide will rise by an average of 9.8 per cent this year. It noted the medical trend rate is the percentage increase in per‑person medical plan costs needed to account for expected price inflation, advances in medical technology, changes in how people use health-care services and cost shifting from government programs.
Read: Global health benefits costs expected to jump 10.3% in 2026: report
In a press release, Isabel Boyer, Aon’s vice-president for health solutions in Canada, said the 2025 U.S. tariffs on imports from Canada and other countries are driving up costs and adding friction within the integrated North American and global pharmaceutical supply chain. “While it’s hard to quantify precisely, we believe these tariffs are increasing procurement costs for certain drugs in Canada and heightening the risk of shortages.”
At the same time, the introduction of generic glucagon-like peptide-1 receptor agonist medications is expected to help offset the cost impact of expanding coverage for these drugs, she added.
The report found the top medical conditions driving medical plan costs in Canada are autoimmune diseases, diabetes and obesity, musculoskeletal and back disorders, mental-health conditions and respiratory and lung disorders.
Boyer added continued pressure from carriers on administration and pooling fees will also influence overall costs. “Plan sponsors are also likely to focus on strengthening existing wellness programs and partnerships rather than introducing new services, leveraging data to monitor health risk indicators and more effectively target their resources.”
Read: Global health benefits costs projected to rise by 9.8% in 2026: report