Out of pocket medical expenses make up about 62% of all healthcare costs in India, said Insurance Regulatory and Development Authority of India (IRDAI) Chairman T.S. Vijayan.
‘Need to reduce’
“There is a need to bring down out of pocket expenses of patients, currently at about 62% of all healthcare costs,” Mr. Vijayan said at a FICCI event on Monday.
“This is extremely high and leads to impoverishment of patients. In comparison, out of pocket hospital expenses in developed countries such as the U.S. and the U.K. is 20% and in BRICS countries about 20-25%.”
Mr. Vijayan also highlighted the need to create health insurance products that were simple and intelligible to customers, provided coverage to the aged and infirm and those suffering from chronic ailments, brought down distribution costs, and ensured that there was no profiteering to the detriment of the insured.
“The time is perhaps ripe to look at introducing community group insurance products to bring down distribution costs and determine the genuineness of health insurance claims,” he said.
“The veracity of claims by an insured person can be verified through members of a community or group so that insurance companies are not unnecessarily burdened with fictitious claims.”
