Global healthcare benefit costs to rise 10% for employers in 2027
LONDON, October 27, 2026 — Marsh (NYSE: MRSH), a leading global professional services firm, released its Health Trends 2027 report, drawing on a survey of 306 insurers across 69 markets, excluding the US. The report finds that global medical trend rates, the expected annual increase in the cost of medical claims per health plan member, are projected to reach 10% in 2027 – marking the seventh consecutive year of double-digit increases for employers.
Persistently elevated costs are creating a challenging environment for employers seeking to balance current health benefits coverage with long-term investments in their employees’ health. Nearly 40% of the markets surveyed expect to post double-digit trend rates in 2027. Looking ahead, almost four in five (78%) insurers expect cost increases to remain at current levels or increase further through 2030.
Ongoing cost pressures demand continued attention from employers
Higher healthcare costs are driving medical trend rates, with financial implications for workforces and employers. Insurers attribute the persistently elevated cost environment primarily to two forces: more advanced technology in care delivery (57%) and a higher incidence of health conditions (47%).
For employers, the question is which plan design, financing, and operational levers can they pull to manage costs while also influencing positive health outcomes for their employees. Thirty-eight percent of insurers expect employers to limit cost growth through moderate plan changes in the coming renewal cycle, and 32% of insurers believe employers will focus on optimizing the value of their benefits by aligning coverage and investment with health outcomes and business priorities.
Hervé Balzano, President of Marsh Health and Benefits, commented: "Seven consecutive years of double-digit global medical trend rates underscore the importance of a strategic, long-term approach to managing health benefits. Employers that act proactively can better support their people, strengthen workforce health, and make more sustainable decisions for the future.”
Cancer poses a mounting cost challenge for employers
Cancer is the single largest driver of global health claims costs, with 70% of insurers ranking it among the top three causes of claims by dollar amount.
Highly-targeted cancer treatments are a driver of healthcare spending, delivering better outcomes at higher cost as the pipeline of these advanced therapies continues to grow. At the same time, as populations age and survival rates improve, more employees and their dependents are living with cancer as a chronic condition, requiring sustained benefits support well beyond initial treatment.
Yet preventive coverage remains limited: fewer than half of insurers cover cancer screenings; 49% cover breast cancer screening, while just 30% cover lung cancer screening. While some public health systems provide screenings, better prevention and earlier intervention could materially change both health outcomes and cost trajectories.
"The strides the scientific community has made in cancer treatment are remarkable, contributing to longer, healthier lives, and positively impacting society and economies," said Dr. Lorna Friedman, Senior Partner for Health Transformation and Sustainability, Marsh Health and Benefits. "Now employers need to think across the full cancer continuum: from prevention and screening through treatment support, return-to-work, and survivorship care. The employers that understand their risks and options will be better positioned to manage costs and support their people when it matters most."
AI is reshaping costs
Artificial intelligence is reshaping healthcare delivery and costs, creating both savings opportunities and new risks. More than half of insurers (55%) believe AI will reduce employers’ medical portfolio costs over the next two to three years, citing efficiencies in claims processing and fraud detection. But not all insurers are so sure that AI will lead to meaningful savings. While a minority believe AI will increase total costs (6%), nearly a quarter (23%) are unsure about its impact.
The broader opportunity for savings for employers lies in using strategies that improve outcomes and reduce avoidable claims. The Health Trends Report finds that many opportunities for savings, such as implementing plan designs that encourage high-value care or managing high-cost claimants, may not be included by default in plans today.
Mr. Balzano added, “The right approach depends on the workforce, geography, and claims profile, but effective strategies share a common foundation: aligning benefits design to organizational objectives, optimizing financing and operations, and investing in prevention and early intervention to help keep employees healthy and reduce avoidable claims over time.”