MCHI Podcasts

With the continuous mounting prices of healthcare in the country, and with the ever- growing occurrences of diseases, health insurance today is a definite requirement. Travelling, frantic work schedules, unhealthy eating habits, food quality, and increasing intensity of pollution have amplified the peril of developing health problems. The massive shift in our lifestyle has made us more prone to an array of health disorders. The average cover of an employee working in a private sector is about 2-3 lakh a year, which is minimal. Hence, it becomes imperative that employees demand higher health insurance cover from their employers as they are not adequately protected. 

Government scheme like Ayushman Bharat-National Health Protection Scheme cover over 10 crore poor and vulnerable families and 50 crore beneficiaries, approximately. It provides coverage up to Rs 5 lakh per family per year for secondary and tertiary care hospitalisation. The employers should take note of this and increase the health insurance cover for their employers. Inflation in the healthcare industry is estimated at 15% in India. The rates of medical procedures and healthcare have been constantly rising. A well-being study conducted by healthcare major ManipalCigna Health Insurance has found that nearly 82% of Indians are suffering from stress on account of work, health and finance- related concerns. Therefore, having health insurance is a basic requirement. When an employee joins a new company, one of the first things one should notice is their health insurance plan. 

At the same time, every employer or a company’s HR department should have answers to queries about what aspects do their health insurance plans cover. This helps the employee take an informed decision. Health insurance is a matter of great importance more so because of the number of lifestyle-related problems that are becoming common with each passing year. If we look at the healthcare inflation in addition to the lifestyle disease epidemic across cities and towns, a future- proof health insurance cover for a young family living in an urban area should be a floater cover of Rs 10 lakh. This should be supplemented with the maximum top-up available which easily takes the cover to around Rs 20-25 lakh. 

Witnessing the major treatment expenses today, which cost an average of Rs 5-6 lakh, it is bound to be billed at around Rs 10 lakh in 8 years and Rs 20 lakh in 15 years, at a 10% inflation rate. This is when one would most likely need a medical cover. The employers should also note that buying a group health insurance policy is a great morale booster for the employees. It fills an employee with a sense of security and affinity, and therefore, it is crucial to choose the right group health insurance policy. While buying a group health insurance, it is likely to lean towards those plans which come with low price tags. 

However, if an employer chooses the plan on the basis of the price only, the chances are high that the company will choose the lower cover. Furthermore, it could turn out that the insurance company offering lesser premium could have a poor customer service. So, the employer should not make price the index of purchasing the group health insurance policy and look for other features as well. If truth be told, one visit to the physician is sufficient to upset the monthly budget of a middle-class family. While settling on the coverage one should ensure the cover is ample enough to deal with medical expenses. 

The writer is MD & CEO, ManipalCigna Health Insurance Company 
Prasun Sikdar

Publication – Daily News & Analysis