Funding for health care through insurance is still 15-18%, showing that there is plenty of room for improvement. In total, 65 percent of healthcare expenditure is on outpatients and only 35 percent on inpatients, while the majority of insurance coverage is in hospitals
With the government’s introduction of Rashtriya Swasthya Bima Yojana and Ayushman Bharat, healthcare infrastructure has started to develop in Tier 2 and Tier 3 cities as some funding mechanisms have achieved this. Today, healthcare spending stands at 4.7 lakh crore, which is up about double from its pre-pandemic spending of 2.7 lakh crore. Funding for health care through insurance is still 15-18%, showing that there is plenty of room for improvement. In total, 65% of health expenditure is outpatient and only 35% inpatient, while the majority of insurance coverage is done in hospital.
The pandemic has made health care and technology work together through teleconsultation, telemedicine and other digital activities. As a result, insurance companies not only started covering the technology, but they also started using this technology to approach customers.
The work done by industry bodies and regulators has resulted in standardization of data and consistency in data entry. But it is clear that the health insurance portfolio of an insurance company is still in deficit. We know that no loss-making portfolio can continue to grow. In order to achieve the goal of providing quality and affordable insurance coverage to all citizens, hospitals, providers, and physicians must all come together.
Watch Dr. Shreeraj Deshpande, Head of Health Business, SBI General Insurance, delivers a keynote speech at the 6th Businessworld Healthcare Excellence Summit and Awards on the Future of Health Insurance in India.
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