Dealing with health related issues is never easy, especially if unexpected, either for the patient or the caregiver. According to the World Health Organisation, India ranks 184th of 191 countries in terms of percent-of-GDP spending on health.
According to estimates, less than five per cent Indians have private insurance. Of this, 65 per cent are under-insured and hence 70 per cent of India’s healthcare expenditure is paid from savings. To make healthcare spending easy, CareCover, a healthcare financing company, is planning to launch a first-of-its-kind product in India.
The proposed Health Savings Account (HSA) with CareCover allows consumers to save a pre-determined monthly amount in an interest-earning savings account. Account holders get discounts at major hospitals and other healthcare service providers for healthcare bills. However, unlike western countries, HSA in India will not be tax-deductible, said Nivesh Khandelwal, CEO, CareCover.
That said, a health savings accounts isn’t an alternative to health insurance. At best, it can only complement an insurance cover, by encouraging customers to save money for expenses not covered under the insurance policy and can even help pay for medical expenses of family members without a health cover. The firm offers a minimum amount of Rs 20,000 within 10 minutes with minimal documentation.