Health insurance is important for safeguarding individuals and families from high medical costs and ensuring access to timely, quality healthcare. Although the health insurance market is growing in India, policies are not evenly distributed across the country. In this blog, we’ll explore the healthcare system, insurance coverage, important statistics, costs, and more in India.
Introduction
Health insurance is a crucial safety net that shields you from unexpected medical costs. If there is a medical emergency, you can rely on your insurer to cover the bills and save yourself from financial setbacks. However, a large part of the population still doesn’t have this coverage. Recently, the IRDAI announced a plan to make health insurance available to everyone by 2047, highlighting how crucial this coverage is. They are also encouraging insurers to offer health insurance online with minimum paperwork to help more people get the coverage they need.
An Overview of the Healthcare System in India
Healthcare is a major sector in India’s economy, playing an important role in generating revenue and providing employment. While healthcare and health insurance are closely related, they are different. The healthcare sector in India includes hospitals, medical devices, telemedicine and more, with health insurance playing a key role in covering medical costs.
The sector is expanding quickly due to broader coverage, improved services and increased investment from both public and private sectors.
As the healthcare sector grows, it will ensure quality treatment for all, with health insurance making it affordable and accessible.
Health Insurance Statistics
Although the health insurance market in India is experiencing growth, it is not spread evenly across the country. At the same time, the public healthcare system struggles due to a lack of funding, which is why many people prefer private health insurance. Private insurers often provide better and more efficient services, so they are a preferred choice for a large part of the population. Let’s take a look at some statistics to understand this more clearly.
Health insurance statistics related to coverage
The following are statistics related to health insurance coverage:
● In 2023, over 550 million people in India were covered by health insurance
● Nearly 400 million people in India have no access to health insurance. About 70% of the country’s population is either covered under public health insurance schemes or voluntary private health insurance policies However, the remaining 30% of the population (over 400 million people) lack health insurance altogether.
Health Insurance Statistics Related to Premiums
Health insurance statistics related to premiums are as follows:
● In 2021, the total health insurance premiums in India amounted to over INR 637 billion.
● Public sector health insurers contributed INR 272 billion, while private sector insurers recorded premiums of nearly INR 159 billion.
● Standalone health insurers across the country accounted for about INR 151 billion.
The chart below displays the gross premium collection for health insurance in INR Crores:
Health Insurance Statistics by State
The health insurance statistics by state show that coverage in India is still insufficient. Here’s why:
● Only 41% of households have at least one member covered by health insurance.
● Among people aged 15-49, 30% of women and 33% of men had health insurance or financing schemes between 2019-2021.
● About 46% of those with insurance are covered by state schemes, and 16% are covered by Rashtriya Swasthya Bima Yojana (RSBY).
● Around 3-6% of women and 4-7% of men are covered under the Employee State Insurance Scheme (ESIS) or the Central Government Health Scheme (CGHS).
● Rajasthan (88%) and Andhra Pradesh (80%) have the highest coverage, while Andaman and Nicobar Islands and Jammu and Kashmir have less than 15%.
Health Insurance Statistics Related to Corporate
Employer-sponsored health insurance, also called corporate or group health insurance, is usually provided by companies to their employees.
Reports suggested a 15% increase in the cost of employer-sponsored medical benefits in India in 2022.
This rise in employer-sponsored health insurance indicated that more workers in India were getting covered, ensuring both health and financial security.
Why is Better Health Insurance Coverage Essential in India?
Lifestyle diseases are common in India, with conditions like heart disease, diabetes and respiratory illnesses affecting a large portion of the population. While these ailments are treatable in the country, the cost of treatment has been rising sharply due to advancements in medical research and the use of advanced medical technologies. As a result, many individuals find it increasingly difficult to afford quality healthcare.
The following are some more reasons why better health insurance coverage is important in India:
● Millions of people in the country die from non-communicable diseases (NCDs) every year.
● According to a report, in 2021, cancer (55%), circulatory system diseases (43%) and Covid-19 (36%) were the leading causes of medical claims in Asia.
● Respiratory diseases (47%), gastrointestinal disorders (36%) and Covid-19 (34%) had the highest number of claims.
● Indian households spent over INR 120 billion on healthcare and medical services in FY 2022.
Conclusion
Health insurance in India needs more accessibility. Many people still don’t have coverage, and the rising cost of healthcare is straining their finances. Looking ahead, it is important to push for better and more affordable health insurance so everyone can get the care they need without worrying about finances. To simplify the process, insurers are offering policies online, and you can easily use a health insurance premium calculator to find a plan that suits your budget and needs.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
“This article is part of sponsored content programme.”
