Evolution of the Health Insurance Industry

The healthcare insurance sector has significantly evolved in India over the past few years and is now one of the biggest industries. In India, there was a time when there were no adequate resources, and as a country, the mortality rate was also very high. Those conditions arose the need to focus on health and thus started the medical insurance era. As a result, the government developed the best health insurance that people could afford. 

The Early Days of Health Insurance in India

The first medical insurance came in 1948 in India as the ESI – Employer State Insurance. ESI was mainly for government employees and their families. These insurance plans covered some specific illnesses, disabilities, and death cases. 

There has been a shift toward more value-based healthcare, in which providers are compensated based on the quality of care provided rather than the number of benefits provided. This shift has led to insurers partnering with providers to offer more integrated and coordinated care, which has helped to reduce costs and improve patient outcomes.

Health insurance portability enables individuals to transfer their medical insurance plan from one company to another. This ensures continuity of coverage for individuals who may change jobs, relocate to a different state, or experience other life changes. By providing individuals with the ability to maintain their health insurance plan, health insurance portability helps them to maintain continuity of care, allowing them to enjoy the best health insurance in India.

Very rarely were maternity or OPD cases covered in those days. However, more and more changes continue to happen from that day to today, and various government, public, and private institutions are offering some of the best health insurance plans in India.

Healthcare Cost and Healthcare Insurance

The rising healthcare cost became the reason for introducing the healthcare industry in India. Since paying healthcare expenses was becoming very difficult, especially for middle-class families, the medical insurance industry started to see a tremendous boom. 

As a result, the government formed the Insurance Regulatory and Development Authority of India in 1991 and made several amendments to the scope of medical insurance plans. 

More and more private insurance companies started to develop their plans, and in no time, Mediclaim became the hot favourite among people. Individuals and families started investing in medical insurance, and corporate and government offices began to offer medical insurance coverage to their employees.

Today’s Healthcare Industry in India

Today, India and the world have realised the importance and need for medical insurance plans. With different diseases and the evolution of COVID-19, buying a medical insurance plan seems sensible.

In the present-day scenario, people don’t have to go to an insurance office to buy an insurance plan. And thanks to technology, there is a lot of ease in how things used to be in the earlier days. Now, anyone can browse and select health insurance plans in India by sitting in the comfort of their house. Additionally, insurers are now using predictive analytics to understand better customers’ health needs and artificial intelligence to automate some of their processes. Agents also come home for all the paperwork, documentation, and sample collections. 

Below are some different types of medical insurance plans available in India. These can be available to individuals based on their eligibility and criteria that the insurance companies and the government set:

  • Niva Bupa Reassurance Plan- A comprehensive health insurance plan offering health checkups starting Day 1.
  • Niva Bupa Health Companion – A perfect health insurance plan with up to 1 crore health coverage.
  • Niva Bupa Health Premia – Best health plan with cover up to 7.5 lakhs and additional maternity benefits.
  • Ayushman Bharat Yojana A universal health care scheme by the Ministry of health and family welfare offering a cover of Rs. 5 lakhs.
  • Pradhan Mantri Suraksha Bima Yojna –  It covers people aged 18 and 70 and provides accident insurance coverage to the people of India.

Future of the Health Insurance Industry in India

The medical insurance industry is one of the biggest industries in India and the world. While many people can afford to buy a medical insurance plan, there are still many who can’t afford it. With advanced technologies coming into the picture for treating various illnesses, it is evident that the treatment costs will only increase. Undoubtedly, this industry will be around for a while in the future.

Besides, people nowadays are educated enough to understand how insurance plans can help them not use their hard-earned savings on hospital bills and treatment costs. Therefore, India has seen an increase in the buying percentage of insurance plans after COVID-19, and the number will increase.

Medical insurance plans are no longer a luxury; they have become necessary for everyone. People have many options with different insurance companies, from public to private- offering plans. While deciding, they can look for the company that gives them the best health insurance for them and their families.