Increasing medical expenses in India
India has experienced unprecedented growth in the number of hospitals that have sprung up across the country. In spite of this, the WHO affirms that 70% of the Indians continue paying all the medical expenses of their pockets. In our neighboring countries, as in Sri Lanka, only 30-40% of the population pays out of pocket for medical expenses. The National Office of Sample Surveys (NSSO) reports that spending on health care has increased from 6.6% to 6.9% in rural India. and from 5.2% to 5.5% in urban areas between 2004-05 and 2011-2012; while the Health Research Institute (HRI) of PwC estimates that medical costs will increase by 6.8% in 2015 from the estimated 6.5% for 2014.
In a recent speech, President Pranab Mukherjee expressed concern that the majority of Indians, around 4 million people, are pushed into poverty each year because of the medical expenses they bear.
Another survey conducted by the National Sample Survey Office suggests that the cost of treatment increased at a double-digit rate of growth, exceeding the average inflation in India, both rural and urban, in the last decade up to 2014. In addition, 86% of the Rural patients in India and 82 The percentage of urban Indian patients does not have access to any type of insurance provided by the employer or with state funds. In states such as Punjab, Maharashtra, Uttar Pradesh and Haryana, a large majority of the population turns to private hospitals for treatment.
These are the main reasons for the increase in the cost of medical expenses in India:
Increase in medical costs
The cost of medical facilities will increase with the increase in medical costs. The growth rate is slower than a decade ago since these costs outweigh inflation. This has led to spiraling expenses that remain uncontrolled and go unnoticed by the public.
Greater reward for medical providers
Hospitals tend to pay doctors and medical providers under the fee-for-service system. As the medical system is not integrated, repetitive tests and excessive treatment procedures are carried out. This can be harmful and unjustified since patients do not understand the nuances of the treatments they undergo.
Growth of chronic diseases and obesity
There is an increase in chronic conditions such as asthma, heart disease and diabetes. This is due to the change in eating patterns, weather conditions and lifestyle choices. Obesity is also increasing in urban regions and this leads to chronic diseases and inflated medical expenses.
Health is not consumerist
Since health care is not consumed and is only used by sectors of society, costs continue to increase. Since people continue to pay their medical expenses, there is no control over the increase in prices.
Lack of transparency in costs
Even when consumers obtain information from online sources and journals, there is no method to understand the options and costs of treatment. This lack of cost transparency means that consumers can not make truly informed decisions.
Insufficient public health system
Most public and government hospitals are understaffed and lack the basic requirements to function. This has resulted in a wave of private players charging exuberant rates that make several families become poor. Public hospitals can not keep up with private players and, therefore, stay behind.
Fewer plan options
Health insurance companies offer plans that control costs. Therefore, they limit provider plans and networks. This results in the search for fewer plan options and reduced access to physicians and providers.
Increase in pharmacy costs
With the increase in the costs of specific drugs, there is likely to be an increase in the cost of medical care and facilities. Similarly, some medications have seen a huge increase in price due to availability and need.
With the right Health insurance plans, will be safe and protected against these escalating costs in medical facilities. This will help you cover most of the costs that are usually covered in your insurance plan and keep it safe and well protected. Also, if you travel long distances, you must register for Travel insurance As costs may increase especially when traveling abroad. This is the most important thing for all members of your family, as it is important to keep them safe and control costs. Despite this, you should review and verify all the details within the policy and review multiple providers before enrolling.
Increasing medical expenses in India,