Enhancing Your Health Account: Tips For Managing Healthcare Expenses

Enhancing Your Health Account: Tips For Managing Healthcare Expenses

Introduction

The healthcare industry in India has experienced significant growth in recent years, both in terms of revenue and employment. However, the rising cost of healthcare and the lack of affordable options pose significant challenges for individuals and families. In this article, we will explore strategies for managing healthcare expenses in India, considering the factors contributing to the high costs and the potential solutions to address this issue.

Understanding the Rising Healthcare Costs

India has been grappling with the issue of rising healthcare costs due to several factors. The growing population has increased demand for healthcare services, increasing prices for medical treatments, procedures, equipment, and medications. Additionally, the shortage of healthcare professionals and facilities further exacerbates the rising healthcare expenses. This shortage leads to overcrowding and more extended waiting periods for medical treatments, which in turn drive up costs.

Challenges in the Indian Healthcare System

The Indian healthcare system comprises the public and private sectors. While private healthcare services are of good quality, they are often unaffordable for the majority of the low-income population. On the other hand, public healthcare faces challenges such as inadequate infrastructure and a shortage of healthcare professionals, particularly in rural areas. This lack of access to affordable healthcare options further contributes to the rising healthcare costs in India.

The Need for Health Insurance

One of the key strategies for managing healthcare expenses in India is to have a comprehensive health insurance plan. Health insurance provides financial protection against high medical costs and ensures access to quality healthcare services. However, the awareness and adoption of health insurance in India are relatively low, particularly among the low-income population. Understanding the importance of health insurance and the various options available to individuals and families is crucial.

Managing Out-of-Pocket Expenses

While health insurance covers medical expenses, insurance companies may not fully cover certain components. Out-of-pocket expenses, such as day-to-day care and non-hospitalization expenses, require individuals to set aside some money for healthcare needs. As is infamously quoted, India’s Out-Of-Pocket-Expenditure (OOPE) for health is one of the highest in the world at 63 percent in 2018. Creating a separate fund for such expenses is advisable, particularly as one age 50 when healthcare needs may increase. Individuals can better manage their healthcare costs by planning and budgeting for out-of-pocket expenses.

Government Initiatives for Affordable Healthcare

The Indian government has implemented various initiatives to make healthcare more affordable and accessible to the population. The National Health Protection Scheme, also known as Ayushman Bharat, aims to provide health insurance coverage to over 500 million people. This scheme offers financial protection against high medical costs and ensures access to quality healthcare services. The government has also promoted the use of generic medicines to reduce the cost of medications. Out of what Indians spend on healthcare, medicines constitute the highest share (72 percent in rural, 70 percent in urban), followed by hospitalization (getting admitted, tests, consultation) and non-hospitalization (transit, food, etc.) expenses.

Taking Advantage of Preventive Care

Prevention is better than cure, which also holds true in managing healthcare expenses. By adopting a healthy lifestyle and focusing on preventive care, individuals can reduce the risk of developing chronic illnesses that require expensive treatments. Regular exercise, a balanced diet, and routine check-ups can help detect health issues at an early stage, leading to timely intervention and lower healthcare costs in the long run.

10 Tips to Manage Healthcare Expenses

1. Practice preventive care: Take proactive measures to maintain good health, such as adopting a balanced diet, exercising regularly, getting enough sleep, and avoiding smoking and excessive alcohol consumption. This can help prevent the onset of diseases and reduce the need for medical intervention.
2. Focus on a healthy lifestyle: Invest in your well-being by prioritizing healthy habits. This includes maintaining a healthy weight, managing stress levels, and staying physically active. By doing so, you can reduce the risk of chronic illnesses and the associated healthcare costs.
3. Stay up to date with vaccinations: Ensure that you and your family members receive recommended vaccinations. Vaccines are a cost-effective way to prevent infectious diseases and their potential complications, thus reducing healthcare expenses in the long run.
4. Seek generic medicines: When prescribed medication, inquire about the availability of generic alternatives. Generic drugs have the active ingredients similar to their branded counterparts but are typically more affordable. Consult your healthcare provider in this regard to save on medication costs.
5. Compare healthcare providers and services: Before undergoing any medical procedure or treatment, consider obtaining multiple opinions and comparing costs among different healthcare providers. Research hospitals and clinics to find those that offer reasonably priced quality care.
6. Utilize government healthcare schemes: Take advantage of available government healthcare schemes and insurance programs. These schemes can provide financial support and coverage for medical expenses, making healthcare more affordable.
7. Maintain health insurance coverage: Invest in a health insurance policy that matches your needs and budget. Having adequate coverage can protect you from high medical costs during emergencies or when seeking specialized care. Compare policies and choose one that offers comprehensive coverage at a reasonable premium.
8. Use telemedicine services: Explore the option of telemedicine consultations for non-emergency medical conditions. Telemedicine allows you to consult with healthcare professionals remotely, saving time and money associated with in-person visits.
9. Follow prescribed treatments and medications: Adhere to the prescribed treatment plans and take medications as directed by your healthcare provider. This helps prevent complications or the need for additional medical interventions, which can lead to increased healthcare costs.
10. Be proactive with your healthcare: Regularly schedule preventive check-ups and screenings to detect potential health issues early on. Timely diagnosis and intervention can prevent the progression of diseases, reducing healthcare expenses in the long term.

Conclusion

Managing healthcare expenses in India requires a combination of strategies, including having comprehensive health insurance, budgeting for out-of-pocket expenses, taking advantage of government initiatives, and prioritizing preventive care. Individuals and families must understand rising healthcare costs, evaluate their healthcare needs, and choose suitable health insurance policies. By adopting these strategies, individuals can better manage their healthcare expenses and ensure access to quality healthcare services without financial hardship.

Remember, health is wealth, and investing in one's well-being is a lifelong responsibility. Individuals can safeguard their financial stability while prioritizing their health and well-being by making informed decisions and taking proactive steps toward managing healthcare expenses.

This piece is written by Vishnu Ajai , Market Research Intern at Plenome