Modi government plans to curb rising premiums, medical claims likely to…, cap may be imposed on…
The Modi government is promoting the National Health Claims Exchange. This will prevent delays and irregularities in the claims process
New Delhi: There has been a steady rise in health insurance premiums, placing a greater financial burden on the common man. The Modi government is now reportedly preparing to intervene in this matter. As per an ET report, the government has begun discussions with the insurance regulator (IRDA), senior industry officials, and hospital groups on this issue. An official said that some suggestions have been sent to IRDA, and the final decision will now be taken by the regulator.
To keep the rise in health insurance premiums in check, the government is considering strict measures such as setting an upper cap on premiums charged by insurance companies. There is also a plan to tighten disclosure (information-sharing) rules. According to the officials, the Centre is also mulling reducing the management expenses of insurance companies.
Under this, a cap may be imposed on the commission paid to agents, which would reduce companies’ costs and could benefit customers.
Here are some of the key details:
- The Modi government is promoting the National Health Claims Exchange. This will prevent delays and irregularities in the claims process
- Its aim is to make the entire claims process digital, faster, and easier so that customers do not face inconvenience.
- The government is also closely monitoring whether the reduction in GST is actually being passed on to policyholders by insurance companies.
- The cost of medical treatment in the country is rising rapidly.
- Hospitals are increasingly using expensive machines and advanced technology.
- Insurance companies allege that hospitals often generate inflated bills. Because of all these factors, the burden of claims on insurance companies increases, and they charge higher premiums from customers.
- Hospitals say that insurance companies either delay settling claims or make unnecessary deductions in bills.
When it comes time to claim insurance, the common people often receive less money than expected, or they face significant difficulties during claim settlement. According to an Aon report, medical inflation in India is estimated to rise to 11.5 percent by 2026.
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