India plans insurance reforms to rein in healthcare costs, sources say
MUMBAI: India is weighing wide-ranging reforms of health insurance, from benchmarked treatment rates to a nationwide claims exchange, as it looks to boost transparency in a struggle to hold down some of the highest medical inflation in Asia, two sources said. Medical inflation of roughly 12% to 14% a year, according to industry estimates, puts pressure on families and prompts authorities to hunt…
India is considering extensive reforms to the health insurance sector in an effort to curb rising medical costs and increase transparency, according to sources familiar with the matter. The proposed changes could include benchmarked treatment rates, a nationwide claims exchange, and a uniform list of admissible treatments. Currently, medical inflation in India stands at 12% to 14% annually, which is significantly higher than the average for Asia and a concern for families.
It is estimated that 10% to 15% of health claims may be fraudulent or unwarranted. The reforms are expected to be finalized by the end of the year and implemented subsequently. A panel of regulators, industry leaders, hospitals, and the Confederation of Indian Industry (CII) will recommend the reforms, with the Insurance Regulatory and Development Authority of India (IRDAI) chairing the panel.
The reforms aim to standardize pricing and coverage, reduce disputes and fraudulent claims, and promote wider insurance coverage among India's population of 1.4 billion, where such spending currently accounts for less than 4% of GDP.
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Also reported by 2 other outlets
- India plans insurance reforms to rein in healthcare costs, sources say economictimes.indiatimes.com
- India plans insurance reforms to rein in healthcare costs, sources say health.economictimes.indiatimes.com
