Health Insurance Premiums Hit New Highs

In an unprecedented surge, health insurance premiums have crossed the Rs 1-lakh-crore mark within the first ten months of the current financial year. This represents a 10% increase from the previous year, signaling a growing financial burden on policyholders.

Segment-wise Growth Analysis

The individual health segment has witnessed the fastest growth, expanding by 13.5% to Rs 37,068 crore, and now accounts for 38% of the total premiums. Group health insurance, which is primarily purchased by companies for their employees, continues to dominate with a 53% share, despite a slower growth rate of 12.4% to Rs 47,312 crore.

Government Schemes See a Decline

Contrastingly, premiums from government-backed schemes, including Ayushman Bharat Yojana, have declined by 9.7% to Rs 8,828 crore. This downturn is attributed to state governments either purchasing insurance or establishing trusts to settle claims, thereby reducing the reliance on traditional insurance models.

Rising Concerns Over Affordability

The sharp increase in health insurance premiums has raised significant concerns over affordability and reach. Despite a 20% increase in premiums last year, the number of individuals covered under personal health policies grew by just 5%, indicating a potential barrier to access for many.

Call for GST Waiver on Health Insurance

In response to the escalating costs, there has been a growing call for the waiver of the 18% GST on health insurance premiums. This move is seen as crucial to making health insurance more accessible and affordable to a broader segment of the population.