The Evolution of Health Insurance in India: A Brief History and What to Expect in the Future
Health insurance has come a long way in India, from being an “optional” expense to becoming a necessity due to rising healthcare costs. The Indian government has taken steps to ensure health insurance is accessible to all, but there is still work to be done. In this article, we will take a closer look at the evolution of health insurance in India, its current state, and what to expect in the future.
History of Health Insurance in India
The concept of health insurance in India can be traced back to the 1920s when Bombay Mutual Life Assurance Society started selling health insurance policies. Health insurance saw a significant increase after 1972 when the Indian government’s National Health Policy encouraged the growth of health insurance providers in the country.
In the 1990s, private health insurance providers entered the market, and the sector saw rapid growth. Health insurance quickly became the preferred means of accessing healthcare in the country.
Current State of Health Insurance in India
Currently, there are two types of health insurance in India – government-funded insurance schemes and private health insurance policies. Government-funded schemes include Ayushman Bharat Yojana, which provides free healthcare to low-income families, and Rashtriya Swasthya Bima Yojana, which covers hospitalization expenses for poor families.
Private health insurance policies are purchased by individuals and corporations to cover their medical expenses. At present, there are 28 private health insurance providers in India that offer various health insurance policies to meet different needs.
Despite the availability of health insurance, there are still challenges faced by the sector. One major issue is the lack of awareness among the population about the importance of health insurance and the types of policies available. The sector is also heavily regulated, which can be a hindrance to growth and innovation.
The Future of Health Insurance in India
The Indian government has taken steps to improve healthcare in the country, and health insurance is a key aspect of this effort. The government has set a target of providing universal health coverage by 2030. They plan to do this by expanding existing government-funded schemes and encouraging private insurance providers to offer more affordable and accessible policies for all.
Health insurance providers are also innovating in response to the changing needs of the population. They are introducing policies that cover new illnesses, offering policies with flexible payment options, and utilizing technology to make the process of buying and claiming insurance more accessible.
Conclusion
In conclusion, health insurance in India has come a long way, but there is still work to be done to ensure it is accessible to all. The government has taken steps to improve the sector, and private insurance providers are responding to the changing needs of the population. With the right investments and regulation, health insurance in India has the potential to transform healthcare in the country.
