Why "Health Insurance Zaroori Hai" for a developing nation like India.

The Indian economy is witnessing a tremendous growth and is soon going to be the world's third largest economy by 2030, with a GDP worth $10 trillion. In order to achieve this ambitious economic target, the health care financing and delivery system in the country has to play a defining role. It has been long established that there’s a strong correlation between the health and economic performance of a country. Economic evidence confirms that a 10% improvement in life expectancy at birth provides a rise in economic growth of 0.3-0.4% points a year. The wealthier countries have a healthier population, a comparison of the basic health indicators clearly denotes that developed nations of the world fare better than the developing nation in healthcare provision and utilization. Whereas, the countries with weak health and education conditions find it harder to achieve sustained economic growth.

 There is no doubt that India is progressing smoothly as far as its economic development is concerned. However we are a long way from our goal on the health front. The health system in our county is at crossroads today and our country needs a major reconditioning, particularly when it comes to providing access, and quality healthcare to 1.3 billion of its population. Healthcare financing through out-of-pocket expenditures, if inequitable, can expose the whole population to huge cost burdens and can also become a potential barrier to a country’s economic development.

It’s observed that national income has a direct influence on the development of health system in the country through insurance coverage and public spending. Hence, healthcare systems that need financing and investment need to be prudently structured, so that it doesn’t have an unfair burden on national spending or competitiveness. Also, the private health insurers need to be cognizant about encountering multiple challenges while catering to the needs of a country as large as India, stratified on culture, class and economy. The health insurers need to support public initiatives to develop a comprehensive healthcare delivery and financing system in the country.

 Also, over the past two decades, the country has witnessed disruptive lifestyle changes mainly due to the rapidly evolving urban economy and the Indian middle-class population. About 33% of Indians above 30 years of age are suffering from one or more lifestyle diseases such as diabetes, cardiac problems, blood pressure, thyroid, and cancer. 3 out of 4 Indians are overweight, and the population between age group 28-38 years is at maximum risk. It is estimated that over 100 million people may suffer from lifestyle diseases such as diabetes and obesity in next few years, leaving a large hole in the national economy. The studies indicate that at least one member in every household will need some kind of long-term medical assistance. A considerable number of people have the means to pay expenses out of their savings, but for many others, a long-term stay in a healthcare facility due to some illness or other debilitating condition can derail their lifestyle or long-term goals. Therefore, individual and families should have some kind of health cover to maintain their lifestyle. 

However, several studies reveal that in India personal saving is the source of health care financing, with over 62% of healthcare expenditure being out of pocket. Also, due to rising medical costs around 5% of the population is forced below the poverty line every year. The Increasing healthcare cost acts as an influencing factor for uninsured citizens to opt for health insurance. Though both the national and state-level government bodies are making targeted efforts to improve the healthcare scenario in the country, stiff challenges at the policy and execution level remain acting as roadblocks in the path of achieving the healthcare goals. Nonetheless, with the introduction of Ayushman Bharat the public healthcare spending is expected to receive a major boost in the coming years. It will facilitate standardization of the health care costs, in turn, proving to be a significant step towards catering to the healthcare needs of the poor. 

Therefore, in the era of rising medical cost and a greater propensity of falling prey to medical ailments, the need to take health insurance cover has, lately, become more important than ever before. Moreover, with joint families giving way to nuclear families, we are basically on our own to face the uncertainty of life. Even for simple diseases, hospitalization is inevitable. The hospitalization costs have seen a CAGR of 10% while medical inflation is at 15%. This is where health insurance cover plays a vital role, it can take care of increasing medical expenses and protect the wealth of individuals. One should also be cognizant that in old age, income declines and the probability of medical contingencies becomes high. Thus, if one has a health plan, any medical contingency would be covered, thereby, sparing savings and investment. If every family has an adequate health cover, it will protect their personal savings from being drained out in case of a medical emergency. Hence, to safeguard long-term financial goals, enjoy lifetime access to quality health care, and to live a healthier life indeed ‘HEALTH INSURANCE ZAROORI HAI’ for everyone.