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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