{"id":"f-e550251d2f-aac19c23-76c0-559b-a432-87f040992ce2","title":"How medical inflation is driving changes in corporate insurance, Marsh McLennan report shows","description":"Indian companies are revising employee benefits as healthcare costs rise, says Marsh McLennan’s Mercer Marsh Benefits India. Flexible models, OPD coverage, and tech adoption are increasing by 2026.","timestamp":1772353800,"category":"food_and_health","headline":"How medical inflation is driving changes in corporate insurance, Marsh McLennan report shows","modifiedHeadline":"India Firms Revamp Benefits Amid Rising Costs","subCategories":["scid_835d4705"],"subcategoriesName":["Health care"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"55","fcSummary":"indian companies are adjusting employee benefits to address rising healthcare costs and evolving expectations. the report highlights a projected 9.9% medical trend rate by 2026, prompting increased insurance coverage and cost-control measures like co-payments. parental insurance is shifting towards shared funding, while outpatient (opd) coverage expands with dental, vision, and telehealth options. flexible benefits are gaining traction, with employees willing to spend on enhancements.","summary":"India firms adjust benefits amid rising healthcare costs. Flexible models & tech adoption are key, report reveals. Costs up 9.9% by 2026.","ctaUrl":"https://trends.glance.com/newz/Business_News/IN/en/cnbc-tv18/f-e550251d2f-aac19c23-76c0-559b-a432-87f040992ce2","sourceUrl":"https://www.cnbctv18.com/business/finance/how-medical-inflation-reshaping-workplace-insurance-models-marsh-mclennan-ws-el-19859121.htm","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/-zdH9r1ziSz0.webp","content":"Indian companies are recalibrating employee benefit structures amid rising healthcare costs and changing workforce expectations, according to the Future of Benefits 2026 report released by Marsh McLennan’s Mercer Marsh Benefits (MMB) India.\n\n
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\n The study is based on inputs from more than 700 employers and over 82,000 employees across 14 industries.\n
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Medical trend at 9.9%\n
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\n The report projects India’s medical trend rate at 9.9% for 2026, reflecting sustained cost pressures. In response, 41% of employers increased the sum insured under health insurance plans in the past 12 months.\n
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Among companies following fixed coverage models:\n
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35% offer up to ₹5 lakh

14% offer ₹5–7 lakh

9% offer ₹7–10 lakh

8% offer above ₹10 lakh

34% follow graded structures

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\n Cost-control measures are also being used. Nearly 40% of organisations apply co-payment structures, while 45% use room rent restrictions and 37% apply dependent coverage controls.\n\n
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Parental insurance shifts to shared funding\n
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The structure of parental insurance is changing. Currently:\n
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41% of employers fully sponsor parental coverage

29% follow co-sponsored models

30% require employees to pay premiums

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\n Co-sponsorship has risen from 4% three years ago to 29%, according to the report.\n
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OPD coverage expands\n\n
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\n Outpatient (OPD) benefits are becoming more common. 43% of employers now offer OPD coverage, and three out of four among them sponsor the benefit.\n
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OPD components typically include:\n
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Dental (74%)

Vision (71%)

Diagnostics (72%)

Teleconsultations (65%)

Pharmacy expenses (60%)

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\n The share of employers offering higher OPD limits has increased between 2023 and 2026. The report notes that household primary care expenses average about ₹42,800 annually for a nuclear family and suggests OPD limits in the ₹40,000–₹50,000 range for alignment.\n\n
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Flexible benefits adoption rises\n
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\n Flexible benefit programs have expanded, with one in three organizations currently offering flex models, and 23% planning to introduce them. Adoption has increased 55% between 2023 and 2026.\n
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Among employees:\n
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85% indicated willingness to spend out-of-pocket to enhance benefits

47% spend up to ₹15,000 annually on additional flex purchases

33% spend ₹15,000–₹25,000

20% spend above ₹25,000

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\n Common flex options include enhanced health insurance (79%), OPD insurance (54%), parental cover (53%), and life or accident top-ups (26%).\n
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Core insurance coverage remains widespread\n
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Group risk protection remains prevalent:\n
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92% of organisations offer Group Personal Accident insurance

87% offer Group Term Life insurance

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\n Twenty-six percent of employers reported introducing voluntary options to enhance life cover for employees or dependents.\n
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Wellbeing programs broaden\n
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\n The report states that 62% of organisations have defined health and wellness strategies, with 84% offering annual health check-ups and 73% providing employee assistance programs (EAPs).\n\n
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\n Chronic disease management, women’s health initiatives and onsite health infrastructure are also being incorporated in some sectors.\n
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\n Employee incidence rates have increased from 5.4% in 2023 to 5.8% in 2026.\n
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Technology adoption grows\n
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\n About 55% of organisations use benefits technology platforms, and one in four have begun using AI-driven tools for compensation and benefits management.\n
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\n However, managing benefits data remains a challenge. Over half of respondents cited manual reporting and communication complexity as key issues, while spreadsheets continue to be widely used for analysis.\n\n
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Employee feedback highlights gaps\n
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From the employee perspective:\n
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One in three report limited flexibility in benefit selection

One in two feel their health insurance may not provide adequate protection

Nearly 70% find benefits communication cluttered

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\n The report says that companies are moving toward shared-funding models, preventive care frameworks and flexible benefit structures while managing rising healthcare costs and regulatory changes.\n
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ALSO READ | Ayushman Bharat scheme: Delhi extends PM-JAY health insurance cover to widows, people with disabilities","readDurationInMinutes":"7","author":{"name":"CNBC TV18","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/ecc3d19b-fc52-4a39-881c-5b0936ae723b.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"383191425","type":"COMSCORE"}],"pointerSummary":["Indian firms are changing employee benefits due to rising healthcare costs and evolving expectations.","The report found India’s medical trend rate is 9.9% for 2026, with 41% of employers increasing health insurance coverage.","More firms are shifting to shared parental insurance and offering flexible benefits, responding to employee feedback."],"tags":["MedicalInflation","CorporateInsurance","EmployeeBenefits","HealthcareCosts","MarshMcLennan","MercerMarshBenefitsIndia","FutureOfBenefits2026","India","MedicalTrendRate","HealthInsurance","ParentalInsurance","OPDCoverage","FlexibleBenefits","WellbeingPrograms","TechnologyAdoption","AIDrivenTools","EmployeeFeedback","PreventiveCare","AyushmanBharat"],"redirectionEnabled":false,"consent":true}

How medical inflation is driving changes in corporate insurance, Marsh McLennan report shows

SUMMARY