Health insurance plans in India seek to cover and treat each national.
Because of India's huge population, health insurance for each citizen is especially important because of the competition to receive high quality care at busy hospitals and medical offices. Insurance policies, in general, act as a shield against risks and unforeseen circumstances. According to Med India, an Indian health website, a 2008 survey reported that only 3 percent of the whole Indian population has an insurance policy. Educating nationals about the importance of health insurance and the benefits of certain plans will reduce worries and prevent suffering from untreated injuries or losses.
Functions
Overall, health insurance policies in India protect the interests of a citizen suffering from a disease or injury. Without a health insurance plan, an Indian national may pay outrageously high fees for medical services at a critical moment. Health care costs are rising, but as of 2010 insurance companies, on average, provide a standalone coverage of approximately 5 lakh rupees ($10,000) for individuals.
Features
As of 2010, leading insurance companies are coming out with plans that target individual customer needs. For example, insurance plans advertise and accommodate older age groups and the elderly. Plans cover medical expenses such as medicines, nurses, disabilities and hospice care. According to the International Observatory on End of Life Care, a study in India in 2006 found that
successful models are in development in India for affordable, sustainable community-based hospice and palliative care services.
Considerations
For India's younger population it is increasingly important to start planning for the future. Because of India's large population and the growing demand for quality health care, insurance plans are still too scarce or in early development to cover all citizens. However, if a young Indian national adopts an insurance plan, either individually or through a job, early on she has an opportunity to start a more financially stable health plan that will extend and develop in the future.
Expert Insight
According to the Government of India Insurance Regulatory and Development Authority (IRDA), India installed an insurance "ombudsman" in 1998 to handle customer complaints over faulty and overpriced insurance policies. Because the institution gives health insurance policyholders a platform to express and resolve insurance issues, customers are better protected and insurance companies are accountable for their transactions.
Types
According to an Indian Express article published in March 2010, maternity is the most widespread reason people are hospitalized in India. While health insurance policies do not usually cover consultation or medical fees, new insurance companies are trying to clarify and simplify the process to accommodate women seeking hospital care during pregnancy. Some current plans cover maternity care, dental costs and pharmaceuticals.
Policies are also centering on senior citizen health care plans for maximum coverage at a lower cost.
Benefits
According to India's National Health Policy of 2002, India features a universal health care system. The system is run by the 28 states and territories of India. The National Health Policy was endorsed by the Parliament of India in 1983 and updated in 2002. The policy aims to make government hospitals some of the highest quality in India, providing treatment at taxpayer expense, offering some essential drugs for free and treating some emergency patients free of charge. However, patients in need of specialized care for complicated illnesses or long-term health issues are referred to secondary and tertiary care hospitals. Private health organizations and family planning trusts have opened to offer low-cost health insurance plans for those Indian citizens whose issues fall through the universal health care system cracks.
Cashless Hospitalization
According to Med India, as of 2007, "cashless hospitalization" is a new feature provided by insurance companies so that an individual is not required to pay the hospitalization expenses at the time of discharge from the hospital. Instead, the settlement is done directly by the insurance company. The hospital must be pre-approved by a third party administrator (TPA) under this option. This is exceptionally important for Indian nationals. Without this service, patients must pay out-of-pocket when leaving the hospital.
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