Maternity is top cost for companies — why your workplace health insurance may get costlier in 2026

Maternity is now the single largest health insurance expense for companies, and this could directly affect the coverage, premiums, and benefits you receive as an employee. According to the Employee Health Matters Handbook 2026, maternity accounts for about 20% of all hospitalisation claims, making it the biggest cost category in corporate health insurance policies. Because corporate insurance works on a group basis, high claim costs in one category can influence the overall premium that your employer pays every year.

For you, this matters because rising insurance costs often lead to higher premiums for employers, which can result in stricter policy terms, lower coverage limits, or higher co-pay requirements in future renewals. Even if you never use maternity benefits, the overall claim experience of the company affects the group policy that covers you. When insurers see higher payouts, they often revise pricing or change conditions at the time of renewal.

The report also shows that health risks among employees are rising sharply. Nearly 7 out of 10 employees carry at least one lifestyle-related health risk, such as high blood pressure, abnormal cholesterol, high blood sugar, or liver stress. These problems are increasingly seen in employees under 35, which means health issues are starting much earlier than before. Many of these risks do not cause immediate illness, but they increase the chances of hospitalization later, raising insurance costs over time.

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Another major reason insurance costs are rising is that dependents — especially parents — account for some of the most expensive claims. Treatments such as heart surgery, cancer care, kidney disease, and chronic illness management are more common in older family members covered under employee policies. Because corporate health insurance usually covers family members, these high-value claims add significantly to the total cost borne by the company and the insurer.

Workplace lifestyle is also playing a big role. Long sitting hours, stress, irregular sleep, and poor diet linked to modern work culture are contributing to metabolic disorders. These conditions often show up first in health checkups, but many employees do not take action after seeing abnormal reports. Over time, these untreated risks turn into hospital claims, increasing the overall insurance burden for the organisation.

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Another trend pushing costs higher is the rise in complex maternity cases, including cesarean deliveries, pregnancy complications, and neonatal care for newborns. These cases are more expensive than routine hospitalizations and can significantly increase the total claim amount in a single year. Since insurers closely track such high-value claims, they play a major role in deciding the premium your company will pay for the next policy cycle.

The report makes it clear that corporate health insurance costs are shaped not just by illness, but by everyday health habits, family coverage, and lifestyle risks. In the long run, these factors determine how much your employer pays for insurance — and that ultimately influences the benefits you receive at work.