Businesses and employees around the world are bracing for double-digit increases in the cost of health insurance in 2026. The average cost is expected to increase by 10.3% globally next year, according to WTW’s 2026 Global Medical Trends report.
“Despite variations in healthcare provision in different countries and regions around the world, rising medical costs are a consistent trend for all,” says Linda Pham, the company’s global health and risk leader for Integrated and Global Solutions.
The projected increases vary by region, with the highest increases expected in the Asia-Pacific region. Latin America is anticipating the sharpest acceleration in costs, from 10.5% this year to 11.9% expected in 2026. The Middle East and Africa will also see above-average healthcare cost increases at 11.3%.
In the United States, the cost increase is projected to be 9.6% in 2026, which is slightly down from 9.7% in 2025 but still significantly higher than 7.6% the previous year. At the same time, medical inflation is expected to fall slightly in North America, from 9.4% to 9.2%, and in Europe, from 8.3% to 8.2%.
The expected price hikes come on the heels of previous increases of 10% this year and 9.5% in 2024, with no relief expected in the near term. More than half of insurers expect these elevated levels to persist for more than three years, driven by high medical costs, regional pressures on pharmacy and outpatient services, and global structural factors. These include new medical technologies, which three-quarters of insurers named as the primary driver of medical inflation, the decline of public health systems (52%) and advancements in pharmaceuticals (49%).
“One glimmer of hope for employers is that investment in technologies, including AI, is leading to higher costs at the moment, but following this phase, new technologies hold the promise of reducing healthcare cost trends in the longer term,” Pham says.
Cancer is the fastest-growing and most expensive diagnosis for insurers in nearly every region, cited by 57% of insurers globally. Three-quarters of insurers observed an increase in cancer incidence among individuals under age 40. Cardiovascular conditions (50%) rank second among conditions driving medical claims costs, with behavioral health issues (37%) ranked third.
“The challenge of navigating healthcare inflation for multinational employers requires strategic management,” says Courtney Stubblefield, managing director, Health and Benefits, for WTW. “This can include investing in education for employees on the use of health benefits, raising awareness of prevention programs for prevalent diseases like cancer, optimizing mental health coverage and introducing flexibility of benefits.”
Careful management and the application of both a “short- and longer-term lens,” she says, “can make sure [employers] are getting the most out of their healthcare benefits while managing cost inflation.”
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