Medical costs around the world are set to rise again in 2026, with a projected 10.3% increase (Figure 1), continuing a broader trend of rising healthcare expenses that continues to challenge insurers and employers worldwide.
| 2024 | 2025 (expected) | 2026 (projected) | |
|---|---|---|---|
| Global† | 9.5% | 10.0% | 10.3% |
| Latin America† | 9.6% | 10.5% | 11.9% |
| North America | 7.4% | 9.4% | 9.2% |
| Asia Pacific | 11.8% | 13.2% | 14.0% |
| Europe† | 9.4% | 8.3% | 8.2% |
| Middle East and Africa† | 8.5% | 10.3% | 11.3% |
Medical inflation remains highest in Asia Pacific, where cost increases are expected to reach 14% in 2026, up from 13.2% in 2025. Latin America is poised for the sharpest acceleration, jumping from 10.5% to 11.9%. %. The Middle East and Africa region is also projected to see acceleration, with trends reaching 11.3% in 2026. Compared to the sharp increases of Asia Pacific, Latin America and the Middle East and Africa, North America and Europe are forecast to see more modest increases of 9.2% and 8.2% in 2026, in line with expected 2025 trends.
These projections underscore a growing sense of concern among insurers. Over half (56%) anticipate further increases in global medical cost trends and 55% expect these elevated levels to persist for more than three years. The data suggests that relief is unlikely in the near future. As insurers brace for prolonged cost pressures, identifying the key drivers behind these trends becomes critical for shaping effective responses.
Rising costs are being felt across all areas of care, though the specific type of service driving these costs increases varies by region. This suggests that medical cost inflation is not confined to one area but is affecting all aspects of healthcare.
The factors contributing to elevated medical cost trends remain largely unchanged. New medical technologies continue to be the leading global driver, cited by 74% of insurers (Figure 2). This is followed by the decline of public healthcare systems (52%), advancements in pharmaceuticals (49%) and fraud, waste and abuse (38%). Regional variations in the factors driving medical trends highlight the diversity of healthcare needs and systems.
| Global | Americas | Asia Pacific | Europe | Middle East and Africa | |
|---|---|---|---|---|---|
| 1 | New medical technologies | Advancements in pharmaceuticals | New medical technologies | New medical technologies | Fraud, waste and abuse |
| 2 | Decline of public health systems | New medical technologies | Advancements in pharmaceuticals | Decline of public health systems | New medical technologies |
| 3 | Advancements in pharmaceuticals | Little or no cost-sharing | Little or no cost-sharing | Advancements in pharmaceuticals | Provider/insurer consolidation |
01
Market volatility has intensified following the U.S. announcement of tariffs affecting most markets. Globally, 81% of insurers expect tariffs to increase healthcare costs over the next three years. The top concern is the disruption to supply chains and the resulting impact on hospitals’ and providers’ operational costs. Hospitals and healthcare providers anticipate further increases in their expenses for medical supplies and pharmaceuticals because of increased trade barriers, which will in turn drive up insurance premiums. These financial strains will also have a ripple effect with broader economic and social implications. As premiums increase, this will impact affordability for both employers and employees alike. In some markets, insurer profitability could be affected as higher premiums lead to fewer group clients and reduced corporate revenue.
02
Although 66% of insurers still exclude family planning and fertility services from their standard medical insurance programs, coverage is expanding globally in response to employer demand. This may signal a necessary shift for insurers.
The most common type of coverage is for specialist consultant services, with 33% of insurers offering this benefit worldwide. Other fertility-related benefits, such as fertility medications (27%) and IVF treatment (25%) are also gaining traction globally and are available across all four regions.
03
Cancer is the leading contributor to claim expenses and the fastest-growing condition in both utilization and cost. In nearly every region, cancer now stands as the fastest-growing and most expensive diagnosis for insurers, cited by 57% globally. Additionally, 74% report seeing an increase in the incidence of cancer in the population under the age of 40 over the past year. This finding aligns with recent medical research that early on-set cancer is on the rise. Medical experts point to risk factors such as environmental and lifestyle factors that are linked to an uptick in cancer.
With advancement in treatments and drugs, such as mutation-based methods and liquid biopsies, have improved care they are becoming exceedingly more expensive — especially over the long term.
04
GLP-1 for obesity are currently covered by 38% of insurers globally, with coverage highest in the Americas (55%). However, 68% of insurers expect usage to increase over the next three years, and 67% anticipate rising costs.
Due to the high cost of GLP-1s, many public and private health plans place restrictions on their use. These restrictions are mostly around the presence of other conditions, BMI levels that are higher than those set by local medical authorities, or limits on the duration of the therapy.
05
Currently, only 17% of insurers report significant use of AI in healthcare programs. This is expected to rise to 37% within two years as many insurers look to incorporate these capabilities into their healthcare programs and activities.
Most insurers (63%) report that their investments in AI have not had an impact on their cost trends. However, when asked about the next two years, this percentage falls to 36%, with mixed results of 35% of insurers saying AI will reduce their healthcare costs trends and 30% say it will increase their costs in the next two years. While AI is doing little currently to reduce medical costs, insurers are optimistic it will reduce costs in the future.
Rising medical costs continue to be a worldwide trend, despite the variance in healthcare landscapes by region. The challenge for multinational employers to navigate rising costs remains constant and requires strategic program management and budget forecasting to endure cost increases.
With many factors out of employers’ control, some actions to take include:
With a partner like WTW, together we can develop the best strategies for your organization to combat the ever-present challenge of rising healthcare costs.
To view our full 2026 Global Medical Trends Survey findings and use our comparison tool to explore trends by country, please submit your information using the form on the right side of this page.
We’re proud to release the 20th edition of this survey. A total of 346 leading health insurers covering 82 countries participated in our survey, which was fielded from June through July 2025. Additionally, we received input for 54 countries from WTW brokers. The combined data covers 91 countries. The country trend is calculated by taking an average of the insurer and broker trends. We use GDP per capita as the weighting factor for regional and global trend rates to lessen the effect of market size and currency issues.
