Finclusion
  • News
  • Explained
  • Fact Check
  • Inclusion
  • Blog
No Result
View All Result
Paytm
  • News
  • Explained
  • Fact Check
  • Inclusion
  • Blog
No Result
View All Result
Finclusion
No Result
View All Result
medical inflation in india

How Medical Inflation in India is Influencing the Prices of Health Insurance

November 4, 2022
in Insurance
406 17
0
Share on FacebookShare on Twitter

Health insurance is an essential form of financial investment. In the post-pandemic world, having an effective health insurance policy should be on top of your financial planning list. If you are new to the concept of health insurance, it can be tricky to choose a policy that serves you best, given the plethora of choices in the market. Moreover, the rising medical inflation in India can also be a hurdle in selecting an insurance policy for yourself and your loved ones.

Health insurance in India

But first, what is health insurance? The concept of health insurance is relatively straightforward. The policyholder pays an amount as a premium to the insurer. If the policyholder needs medical treatment, the insurer will pay or reimburse the expense of diagnostic tests, hospitalisation, and treatment, as per the policy. 

You might also like

India Launches First Digital Threat Report 2024. Image Source: Digital Threat Report 2024

India Launches First Digital Threat Report 2024 to Strengthen Cybersecurity in BFSI Sector

April 8, 2025
The strategic partnership brings together the comprehensive product portfolio of ICICI Lombard and the wide reach of Policybazaar. (Image source: pch.vector on Freepik)

ICICI Lombard partners with Policybazaar, promises accessible insurance solutions to 10 mn consumers

April 9, 2024

In FY21, health insurance accounted for 29.5% of the non-life insurance premiums in India. Out of the 58 insurance companies in the country, 34 are non-life insurers. Of these, 7 are standalone health insurance companies, as per National Investment Promotion And Facilitation Agency data.

What is medical inflation?

Much like other forms of inflation, medical inflation is the economic scenario in which there is a rise in the prices of goods and services in the medical industry.

Various factors can trigger medical inflation. It can result from general inflation or the development of expensive treatment techniques and drugs. A rise in the number of unhealthy people, an ageing population, an epidemic or a pandemic can all place pressure on the healthcare system, increasing costs. 

Medical inflation in India

India has witnessed a significant rise in medical inflation in 2021. As per the MMB Health Trends report by Marsha, the rate of medical inflation in India was the highest in Asia, touching 14%.

Due to the pandemic and its aftermath, there has been tremendous pressure on the healthcare system. There has been a shortage of hospital supplies and healthcare staff compared to the volume of patients. Also, hospitals saw an increase in overhead charges due to the inflow of patients. All these factors have led to a rise in medical inflation.

The rising medical inflation in India directly impacts your health insurance. Due to rising prices, health insurance companies will aim to adjust the premium rates to inflation. As the cost of healthcare services increases, the price of your health insurance premium is also likely to increase. Moreover, medical inflation can also lead to stricter policies, more narrow scope of coverage and specific policy exclusions. 

Medical inflation can also lead to a situation where the policy amount is insufficient to cover the cost of treatment or medications. For instance, some policies may not cover items such as oxygen masks and PPE kits. But these same items can cause your treatment prices to shoot up unexpectedly. 

Way ahead

What can you do as a policyholder in the face of rising medical inflation? Always pick a health insurance plan that meets your primary requirements. It is essential to curate or choose a policy that addresses your immediate health concerns. You can select insurance schemes that allow you to top-up an existing policy to improve coverage. Also, always make room in the policy for emergency conditions. 

Inflation has taken a toll on every industry, and the healthcare sector is no exception. As the age increases, one already pays more in premiums, and watching the rates spike up more due to inflation, might be an unpleasant experience. However, staying aware of all available options and choosing the right policy might save you some bucks. 

Related Stories

India Launches First Digital Threat Report 2024. Image Source: Digital Threat Report 2024

India Launches First Digital Threat Report 2024 to Strengthen Cybersecurity in BFSI Sector

by Finclusion
April 8, 2025
0

In a major step towards securing the country’s digital financial infrastructure, the Ministry of Electronics and Information Technology (MeitY) and...

The strategic partnership brings together the comprehensive product portfolio of ICICI Lombard and the wide reach of Policybazaar. (Image source: pch.vector on Freepik)

ICICI Lombard partners with Policybazaar, promises accessible insurance solutions to 10 mn consumers

by Finclusion
April 9, 2024
0

ICICI Lombard, a private general insurance company, on Tuesday announced that it has entered into a partnership with Policybazaar, an...

InsuranceDekho, an online insurance platform has decided to stop issuing travel insurance to the Maldives.

InsuranceDekho stops issuance of travel insurance to Maldives

by Finclusion
January 10, 2024
0

Amid the recent controversy over a Maldives MP's post on Prime Minister Narendra Modi's visit to Lakshadweep, people in India...

Chatbots and AI-driven virtual assistants have emerged as powerful tools that are revolutionising customer service. (Image source: Pixabay)

Explained: Chatbots and customer service in insurance

by Finclusion
January 8, 2024
0

In the rapidly evolving landscape of the insurance industry, technological advancements are reshaping how companies engage with their customers. Among...

Next Post
sensex and nifty

Unravelling the Story Behind Sensex and Nifty

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finclusion

© 2024 Finclusion

Quick Links

  • About Us

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • News
  • Explained
  • Fact Check
  • Inclusion
  • Blog

© 2024 Finclusion

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Go to mobile version