Health insurance in India: Need to address

Abstract

Health insurance is a method to finance healthcare. Around 65 per cent of people remain in debt for life due to their expenditure on major health problems. Over 300 million people, or more than 25 percent of India's population, gained access to some form of health insurance by 2010. There is a large gap between healthcare delivery and financing in urban areas and rural areas. Health insurance is a minor contributor in the healthcare ecosystem. The main challenge is to see that it benefits the poor and the weak in terms of better coverage and health services at lower costs. With over 80% 'out-of-pocket' expense burden on the consumers, the market is ripe for health insurance entities including global players. The entire healthcare financing and delivery system is poised for a major change.