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How Do Private Health Insurance Companies Influence a Patients Course of Treatment?


With the rise in the cost of medical expenditure and detrimental diseases, health insurance seems to grow. The high prevalence of diabetes and hypertension accounts to 40 to 60% of CKD in India. To address the growing health related disorders, Budget allocation for the health ministry which went up from Rs 33,765 crore in 2015-16 to Rs 38,892 crore, for the year 2016-2017. To give relief to the patients suffering from end stage renal disease, the Government has proposed the initiation of National Dialysis Service Programme. The Government has also proposed the exemption of custom duty on certain parts of dialysis equipment’s. In India, several studies have indicated a sharp rise in lifestyle diseases such as diabetes and hypertension.

Launched in 1986, the Health Insurance industry has grown significantly mainly due to liberalization of economy and general awareness. According to the  World Bank, by 2010, more than 25% of India’s population had access to some form of health insurance. There are standalone health insurers along with government sponsored health insurance providers. Until recently, to improve the awareness and reduce the procrastination for buying health insurance, the General Insurance Corporation of India and the Insurance Regulatory and Development Authority  had launched an awareness campaign for all segments of the population.

Looking at the way, health disorders are becoming so common, Indian population has taken cognizance of the importance of having a health insurance policy. Also with disposable income increasing and social media creating enough grounds for awareness, people since last 10 years or so have become more aware and conscious about truly understanding and respecting the concept of “Health is Wealth”.

Reasons why patients prefer private health insurance companies

Timely intervention of diseases

One of the most important benefits of having a private Health Insurance Policy is that it acts as your biggest armour in case of a medical emergency. It helps you plan your finances in a better manner and let you take preventive measures so that timely treatment can begin.

Access to network of hospitals

Every insurance company has a list of hospitals under its umbrella. As per the need of the hour, parents can decide and pick which hospital will best suit their requirements. This indirectly gives them option as well as access to choose which is the best hospital, depending on the nature of the treatment.

Emergency Medical Expenses

In case there is a family history of critical illness, there are critical illnesses policies that act as a boon when you need financial aid the most. In case of a medical emergency tomorrow, the critical illness policy would protect you and your loved ones.

Focus on varied diseases

Young children and senior citizens are more likely to meet with unfortunate medical emergency because of their fragile body constitution. From regular medical check-ups, hospitalization and test, most of the policies cover critical illnesses also. However, before signing the documents do a thorough research about the insurer and nitty-gritty’s of the plan.

The benefit of Cashless Option

Cashless hospitalization when treatment for illness covered by the insurance policy is such that insurer doesn’t have to pay for the treatment from own pocket. Generally insurance providers have agreements with various hospitals for cashless treatment where charges are paid directly to the hospital by the insurance company. This facilitates the best possible treatment even if one doesn’t have the money to pay for it upfront.

The dilapidated condition of public sector in India

One of the major reasons why people in India are getting aware towards the concept and benefit of health insurance in India is the condition of the public health sector in India. Not much reforms and budgetary allocations have ensured little change in provision for safe water, sanitation and nutrition. One of the most ignored issues is that till date more than half of the Indian population has an absence of basic drinking water, toilet infrastructure, and lopsided drainage system as well as electricity connection. These reasons also encourage the Indian population, particularly living in the urban sector to opt for better and advanced medi-claim. However, there’s still scope of improvement when it comes to addressing these needs and penetration in the rural sector.

In the conclusion we can say, it’s better to be safe than sorry and invest in a suitable health insurance policy for a healthy and a peaceful life ahead. Market is filled with various options to look for. Through comparative study, research, and requirement one can make a well thought-out move.

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