If you seek prevention over cure...

Are you worried about your insurance cover not helping you with tests and check-ups and denies claims for medicine bills? You have another option.

An entrepreneurial venture called Indian Health Organisation (IHO), launched by two former bankers, is offering members get tests, doctor consultations and medicines at discounted rates.
IHO was started by Visham Sikand and Sunando Sen, who both worked in the credit card division of foreign banks. Based out of Delhi, it began operations last year. The company issues health cards to members, which allow them to get full body check-ups, doctor consultations, medicines and dentistry treatments at a discount. Also, the card can be used at a network of doctors, dentists and pharmacies for further discounts.

The company is working in preventive healthcare — basically diagnosing a health problem before it occurs or spreads, so as to try and prevent hospitalisation and nip treatment expenses.

“We wanted to cater to the areas that insurance doesn’t take care of,” says Sikand. “Preventive health check-ups are not covered under insurance policies, neither are medicine costs. Dentistry treatment too is out of the picture. We saw that gap.”

Sikand and Sen studied the market abroad and realised that there was little spending on preventive healthcare in India.

“In the US around 50% people spend on preventive healthcare (tests, check ups etc), while in India only 2% spend on it,” says Sikand.

Using the health card, you can get first two consultations free of cost. “In case you do not like the first doctor you visited, you can re-select a doctor and get the next two consultations free of cost,” says Sikand. Later consultations come at a concessional rate, and the treatment needed after the tests can be done at around 25% lower than cost, he adds.

On pathology tests, X-rays and radiology tests, you can avail a 20-30% discount. Cancer tests also cost lower. Medicines can be bought at 8-12% lower.

You can even get a medical consultation over the phone. Personal accident insurance from Iffco-Tokio General Insurance is also offered.

A caveat: To accrue these benefits, you have to visit the network of doctors, pharmacies and dentists that IHO has empanelled.
The company has a network in 20 cities and is planning to add 10 more. There are 2,500 doctors, 800 pharmacies, 300 laboratories and 500 dentists in the IHO network. The list of doctors is vetted by a panel that includes senior doctors and businessmen.

“You have to be post-graduate to be on our doctor network. 99% of the doctors are post-graduate,” says Sikand.

But a doctor on the IHO network may not be a part of it a year later. “We have ejected a few doctors out of the network as they were found to be indulging in commercial interest. If we get to know of such behaviour, the council will reject them,” says Sikand.
IHO offers two plans. The basic plan covers one person for a year for Rs 1,545 and for two years for Rs 2,316.

A couple can get one and two-year membership at Rs 2,096 and 3,144, respectively.

A family of four can avail one year membership for Rs 2,648 and two-year membership for Rs 3,971.

There is also a priority plan, that offers a higher level of discount. Single membership is Rs 3,530 for a year while couple membership costs Rs 4,853.

Both plans come with a number of vouchers that offer 50% discount on check-ups.

Among its advantages is that the health card doesn’t distinguish between different age groups, the membership rate is the same across all ages. There are no exclusions — people with pre-existing diseases also qualify for membership. You can start using the card from the day it is issued, the company does not claim a ‘grace period’.

Weighing it all
Looking at the cost per membership and the benefits earned, the IHO plans look like a good deal. But DNA Money’s concern was whether membership would cause people to undertake tests simply because of the discount, and which they would otherwise not have undertaken.

Sikand denies this possibility. “We don’t earn any fee or money from doctors. Whatever we get is from the membership fee paid by customers,” he says.

As for the discounts, he says, “At 50% cost (that the labs may charge IHO members) the labs are not earning. It is inducing the customer to take precautions and prevent illnesses.”

Places stocking the membership form include HSBC Bank, Birla Sun Life Insurance, Aditya Birla Money Mart, Reliance Capital, Unicon Securities and Destimoney Securities. SpiceJet too offers the membership form.

The latest entrant is Networth Stock Broking, which began stocking forms last week.

“Looking at the very large expenses for un-covered services that people… incur, Networth and IHO are looking to add at least 1 lakh new customers via this co-brand offering over the next 12 months,” said Girish Dev, executive director and CEO of Networth.

Or, you can visit the IHO website and sign up there.