Insurance and Inflation Impacting Healthcare Costs for Employees

Saturday, 7 September 2024, 21:40

Insurance and inflation play critical roles in healthcare expenses, with 71% of employees carrying the burden. A recent study reveals rising costs in medical services that threaten financial stability. This post explores the alarming healthcare landscape in India.
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Insurance and Inflation Impacting Healthcare Costs for Employees

Insurance and Inflation: The Growing Burden of Healthcare Costs

According to a recent study by Plum, 71% of employees bear the hefty burden of their healthcare expenses out of pocket. With consulting fees for general physicians reaching Rs 300 and mental health services soaring to Rs 25,000 in urban India, affording medical assistance has become increasingly challenging.

The Surge in Healthcare Expenditure

Between FY18 and FY24, healthcare expenditure has increased substantially, with a growth rate of 15.8% according to the Ministry of Finance. India's healthcare spending has ballooned to 1.9% of GDP, highlighting the critical need for effective insurance. As medical inflation rates soar to the highest in Asia at 14%, the reliance on insurance becomes ever more crucial.

Conclusion: Addressing the Coverage Gap

Employer-sponsored insurance coverage remains inadequate, leaving many vulnerable. NITI Aayog's report emphasizes the necessity for a robust health insurance framework in India. It is imperative to address these issues to prevent financial crises due to healthcare costs.


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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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