Medical costs to increase 5.1% in Puerto Rico next year
Medical plan costs in Puerto Rico will rise 5.1% in 2026, compared with 4.8% in 2025, driven by costly treatments for chronic medical conditions such as cancer, diabetes and cardiovascular disease, Aon Puerto Rico reported.
“Although up slightly, from 4.8% to 5.1%, it’s lower than medical costs worldwide,” said Sylvia Ruiz, health and benefits client management director for Aon Puerto Rico, in an interview News is my Business.
Global medical plan costs are projected to go up 9.8% in 2026, according to Aon’s 2026 Medical Cost Trends Report. Puerto Rico’s increase is the second lowest in the Latin America and Caribbean region after Grenada (2%). Costs are dropping in some areas.
A medical trend rate reflects the anticipated annual percentage increase in the unit cost of employer-sponsored medical plans, that is, the adjustment necessary to maintain coverage in the face of general price increases and utilization of health services.
Specialty drugs push costs
The main medical conditions driving medical plan costs in Puerto Rico continue to be cancer/tumors, cardiovascular disease and diabetes, Aon reported.
“One of the main causes of this increase is widespread participation in specialty medications, especially biological immunomodulators and anti-diabetic and obesity treatments (GLP-1),” Ruiz said.
Specialty drugs are used to treat complex or rare chronic conditions such as cancer, rheumatoid arthritis, hemophilia, psoriasis, HIV, inflammatory bowel disease and hepatitis C. Medicare defines specialty drugs as those with a monthly negotiated price of more than $670, that require special handling, or that are often dispensed through specialty pharmacies instead of traditional retail ones.
The global specialty pharmaceuticals market reached $226.7 billion in 2024 and is projected to grow at a compound annual growth rate of 26.5%, from $285.1 billion in 2025 to $2.37 trillion in 2034, Global Market Insights reported. Advancements in biologics and targeted therapies that treat chronic diseases such as cancer, autoimmune disorders and genetic conditions have substantially propelled market demand, GMI stated.
Demand for GLP-1 drugs has grown dramatically in recent years, fueled by public awareness of their benefits and expanded use to treate type 2 diabetes, obesity and cardiovascular disease. According to the Centers for Disease Control and Prevention, spending on these medications climbed 500% between 2018 and 2023. Epic Research found a 40-fold increase in the use of GLP-1s between 2017 and 2021.
A challenge for employers
While inflation has slowed in some markets, health care costs continue to face significant pressure. The persistent rise in costs has become a widespread challenge for businesses, prompting organizations to take proactive measures, Ruiz said.
“By leveraging predictive analytics and adopting innovative cost management strategies, companies can better navigate current volatility and strengthen their long-term profit strategy,” she added, explaining that predictive data analytics enable employers to implement wellness programs designed to mitigate health care costs.
Company-sponsored initiatives provide resources and activities to help employees improve their physical, mental and emotional health. These are meant to foster a healthier workforce, lower costs and boost productivity. They usually include health screenings, mental health support, nutrition education, fitness programs and incentives for participation.
“Wellness programs are an effective strategy to lower health care costs and one of the most used throughout the world,” Ruiz noted.
In Latin America, 89% of companies have wellness initiatives in place, and 86% have programs that are fully integrated into their overall corporate strategy, a rate higher than any other region (41%), Aon reported.
Impact on businesses and employees
Higher medical costs can lead to higher premiums for employers and workers, making it difficult for some companies to continue offering coverage. Employees highly value employer-sponsored health insurance; it is one of the key criteria they look for when considering a job or career change, Ruiz said.
“So not offering it can have an impact on attracting and retaining talent,” she added.
Employees who lose employer-sponsored coverage often do not qualify for the Puerto Rico government’s health insurance plan, known as Vital, because of their salaries.
“This could greatly increase the number of people without access to health care benefits. They would have to look into individual coverage, which doesn’t necessarily compare with what a group plan through an employer can offer,” Ruiz said.
As a result, more employers are exploring alternative benefit strategies to manage rising health care costs, including virtual services such as telemedicine or telehealth, which typically cost less than in-person visits.
