LONDON, 3 November 2025 –
Aon plc (NYSE: AON), a leading global professional services firm, has released its 2026 Global Medical Trend Rates Report, which has forecast that the average medical trend cost rate for 2026 will decline to 12 percent, down from 17 percent in 2025. Aon forecasts that medical plan costs across the world will rise by 9.8 percent in 2026, marking a return to single-digit global growth rates for the first time since 2023.
The medical trend rate represents the predicted annual percentage increase in employer-sponsored medical plan unit costs required to address projected price inflation, cost of technology advances, higher plan utilisation 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 disorders
Rachel Western, health and risk principal at Aon said:
“The UK’s medical trend rate has dropped significantly in this year’s report, reflecting the impact of targeted cost containment strategies and a shift toward more sustainable benefit designs. Employers are increasingly utilising data analytics to drive targeted health strategies and wellness initiatives that manage and improve employee health risk.
“Musculoskeletal issues, cancer, and mental health continue to be the top cost drivers in the UK, but we’re seeing a growing emphasis on targeted prevention and early intervention. Organisations can reduce costs and support long-term workforce resilience by both addressing risk factors early in a targeted way and with a more preventative angle.”
Kathryn Davis, global benefits vice-president at Aon said:
“The 2026 Global Medical Trend Rates Report is being released amid economic and geopolitical uncertainty, including global tariffs. While inflation is easing in some markets, health care costs continue to face significant pressure. This persistent rise in costs has become a widespread business challenge, prompting organisations to take proactive steps. By leveraging predictive analytics and adopting innovative cost management strategies, companies can better navigate ongoing volatility and strengthen their long-term benefits strategy.”
The analysis was informed by Aon professionals in over 100 Aon locations that broker, administer or advise on employer-sponsored medical plans.
Read Aon’s 2026 Global Medical Trend Rate Report here.
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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