WHY HEALTH INSURANCE NEEDS MORE AWARENESS IN INDIA?

Lack of awareness is one of the hurdles in the penetration of health insurance sector in India.

India is scaling unbelievable heights in the fields of science, technology, and healthcare, but a large portion of its population is still not aware of the medical insurance. This is one the reasons why our nation is grappling with abysmal medical debts and high mortality rates.

Though health insurance is one of the fastest growing segments in our country, the penetration of medical insurance still remains low as it is not yet mandatory to buy a health cover in India. There are various types of health insurance plans in India for senior citizens, individuals, families, women, and groups. There are specific plans that cover critical illnesses like cancer, kidney failure, etc. But still, the insurers fail to tap a major chunk of the population.

Marveling over development is futile, while lack of medical insurance continues to put the lives of millions at risk.  

Only 27% of the Indians are covered by health insurance-

As per a joint report by KPMG and FICCI, Only 27% of the people have health insurance in India. In comparison to our mammoth population, this number is undoubtedly low. 

The gap is astonishing because, on one hand, we are trying to pace up with the rest of the world in terms of the public and private healthcare sector. And on the other hand, the cost of the healthcare treatment is escalating and is on a continuous rise.

Major Hindrances

Ignorance on part of the government and the populace alike is the root cause. Additionally, the dependency on the corporate health insurance policy that does not cover major or critical illnesses is another reason. As a result, a large section of the population opens to huge out-of-pocket medical expenses.

As per a 2014 report by WHO, nearly 89% of the health care expenditures in India were out-of-the- pockets (compared to a global average of 18%).

Here’s a quick rundown of some of the major snags-

• Existing loans make people reluctant to spend on a health insurance policy that is actually issued in their interest.

• Despite digitization, a major chunk of the population is still deprived of the perk of medical insurance, because the rural population is still not tapped properly.
• Government launched schemes that are issued in the interest of the rural population fail to reach to the desired population.
• People who can afford to pay higher health instance premiums consider buying a health insurance policy. There is a need to incentivize health insurance to make it feasible for others to buy it without making a hole in their pocket.
• Illiteracy and lack of exposure are two of the biggest factors that people still remain unaware of the benefits of health insurance in India.

Government Initiatives so far…

• Ayushman Bharat—National Health Protection Mission or Modicare is a flagship scheme to be launched by the Modi government on 25^th September, 2018. The aim is to provide Rs.5 lacs health cover per family every year to more than 10 crore deprived families for tertiary and secondary care hospitalization. This scheme shall ensure good quality healthcare to the poor people.

• The govt. launched the Rashtriya Swasthya Bima Yojna in 2008 for the Indians below poverty. It was designed to offer the best of the medical treatments to the underprivileged population of India. As per the reports, approximately 130 million poor people are insured under this scheme. And nearly 36 million families have got their smart cards to avail free healthcare treatments.
• From 1.15% the total health expenditure to be increased to 2.5 % of GDP by 2025
• In April 2018, a Memorandum of Agreement  to improve the public health in India was signed between the Govt. of India and WHO  
• In April 2018, a MoU was also signed with the medical agencies of BRICS countries for enhancement of the medical products.

The focus of the government is mainly on the low income and the underprivileged population. It needs to subsidize insurance policies for the urban population as well to achieve the health insurance goals.

The Role of the Insurance Providers

Only 5% of the private healthcare insurance providers cater to a population of approximately 1.25billion in our country.  There is a huge scope for the health insurance companies to expand their services to those who are yet to buy health insurance coverage.

It is the time when insurers need to launch the health insurance schemes that resonate with the need of the people. This can be done by -

• Increasing customer awareness and engagement through videos, mailers, radio, YouTube, etc.
• Citing examples that help people to understand the repercussions of increasing hospitalization expenses.  How lack of funds can put the life of their loved ones at risk.
• Real-time engagement with customers through the provider’s website. Prompt replies and redressal of queries shall motivate people to buy health insurance.
• Spreading knowledge about the coverage provided in different types of health insurance plans in India.
• Enlightening people about the monetary benefits that are offered in the health insurance policies.
• Campaigns can be organized in villages and cities explaining why health insurance is essential to cope up with the rising medical challenges in our country.

The Need of the Hour

Launching all-encompassing healthcare solutions catering to both in-patient and out-patient treatments as medical inflation continues to rise. 

Launching centralized medical insurance schemes that are managed by both the government and the private insurers and having an integrated fund management system.

It will ensure the availability of the funds to a large number of people. So that more and more people will be able to avail the best medical treatments in India, thus moving closer to the goal of providing healthcare to all.

Bottom-line

Undoubtedly, India is witnessing a remarkable economic growth and development. Nevertheless, it is a long way to reach our health goals. Making health insurance available to all will be a turning point. To cater to our gigantic population, it is imperative for the government to launch effective health insurance schemes for its people.

In the interim, proactive measures by the health insurance providers also need to be implemented.