LONDON, 10 November 2026 – Aon plc (NYSE: AON), a leading global professional services firm, has released its 2027 Global Medical Trend Rates Report, forecasting that the UK medical trend cost rate will fall to 10% in 2027, down from 12% in 2026. Aon expects that medical plan costs will rise globally by 9% in 2027, down from 9.8% in 2026.
The medical trend rate is the expected yearly increase in the cost of employer medical plans. It covers rising prices, the cost of new technology, people making more use of their plans and the rising cost of drugs, especially for cancer treatment.
The top medical conditions driving medical plan costs in the UK are:
- Musculoskeletal and back issues
- Cancer and tumour growth
- Mental health conditions
Physical inactivity and poor stress management are reported as the leading health risks among employees in the UK. Employers are mainly responding by controlling costs through plan design and alternative funding options, alongside promoting wellness initiatives that are predominantly targeted at preventative health.
Rachel Western, Health and Risk Principal, Aon, said:
"After several years of sharp rises in claims and spending across the UK, 2026 has started to show a levelling out, which is reflected in a lower medical trend rate.
"Musculoskeletal conditions still account for the most claims, while cancer remains the most expensive. Mental health support is the fastest-growing area. Its costs are still relatively low, but its impact on organisations is significant – often showing up in other claims, such as heart and digestive problems.
"Key for employers moving forward, is to utilise data analytics to understand key risks and to structure wellbeing strategies on managing these informed risks in order to help drive down risk and subsequently manage cost."
Kathryn Davis, Head of Global Benefits, Analytics, Aon, said:
"The 2027 Global Medical Trend Rates Report shows encouraging signs that medical cost increases are slowing across many parts of the world. However, employers should not mistake moderation for relief. Healthcare costs continue to rise significantly faster than inflation in many markets, driven by long-term pressures such as aging populations, chronic disease, workforce shortages and increasing demand for advanced treatments. Organisations that take a proactive, data-driven approach to managing health and benefits programmes will be best positioned to balance affordability with access to quality care."
The survey was conducted at over 100 Aon locations that broker, administer or advise on employer-sponsored medical plans.
Read Aon's 2027 Global Medical Trend Rate Report here.
ENDS
About Aon
Aon plc (NYSE:AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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