Employer-sponsored healthcare expenses are projected to outpace general inflation despite slower growth.
Medical insurance costs in China are expected to increase by 6% in 2027, down from 7.8% in 2026, according to Aon’s 2027 Global Medical Trend Rates Report.
The 1.8-percentage-point decline is one of the main reasons medical cost growth across Asia Pacific is expected to slow next year.
However, China’s medical costs are still projected to rise faster than general inflation, which is forecast to increase from 0.6% in 2026 to 1.5% in 2027.
After accounting for inflation, China’s medical cost growth is expected to slow from 7.2% to 4.5%.
The figures reflect expected increases in the cost of healthcare services covered by employer-sponsored medical plans, rather than changes in insurance premiums.
A lower growth rate means medical care is becoming more expensive at a slower pace, not that costs are falling.
Across Asia Pacific, medical costs are forecast to increase by 9.7% in 2027, compared with 11.3% in 2026.
Meanwhile, Chinese employers offering medical insurance continue to face potential cost increases from treatments for diabetes and other chronic conditions.
Aon noted that employer-sponsored insurance plans in China generally cover GLP-1 medications, including treatments used to manage blood sugar levels, only for patients diagnosed with diabetes.
Claims for weight-loss treatment are typically excluded from coverage, helping insurers and employers limit spending on these medicines.
However, Aon warned that greater use of GLP-1 treatments and a rising number of diabetes patients could increase medical insurance costs in the coming years.
The report also identified cardiovascular disease, cancer, and high blood pressure as major contributors to medical claims worldwide.
Aon’s findings are based on insights from more than 100 of its offices involved in arranging, managing, or advising on employer-sponsored medical plans.
The projections reflect expectations for healthcare costs in 2027.