Managed healthcare in India is still a far cry, but the rising awareness about health insurance and a latent potential demand has caught the attention of the global market.
Insurance firms studying the shift towards managed health care system
KOLKATA: Managed healthcare in India is still a far cry, but the rising awareness about health insurance and a latent potential demand has caught the attention of the global market.
The World Health Organisation, through the ministry of health and the Institute of Public Health, has undertaken an evaluation of the status of health insurance in India.
Estimates suggest only about 4% of health costs are covered through some form of insurance. Almost 75% of costs are borne by the concerned individual, that is, paid from their
own pocket. About 20% is covered by the state and its insurance schemes, while external donations contribute 1%.
The WHO study will analyse the range of health insurance schemes available from the private health sector as well as state initiatives in insurance for population below the poverty line.
The report is likely to be submitted towards the end of the year.
At present, health expenditure in India is about 6% of the GDP, a low figure when compared to other Asian economies.
The government has nominated B D Banerjee, chairman and MD of Oriental Insurance, to the study panel. He will submit his findings on the private health sector.
“Health insurance will dominate the insurance segment in the next few years’ time. Today, the total premium at Rs 3,500 crore is the second highest after the motor insurance,” Banerjee told DNA Money, Industry analysts too said that the segment is poised to grow to Rs 10,000 crore by 2011. Meanwhile realising the need to change the insurance model from indemnity to managed healthcare, the industry is working to solve some contentious issues, like higher premiums for senior citizens and the inclusion of critical illness in policies.
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