World Health Day: Report sheds light on India's health insurance gap and healthcare divide

World Health Day 2024: As the world observes World Health Day, India stands at a critical juncture in its healthcare landscape, grappling with the stark reality of inadequate health insurance coverage. With the theme "My Health, My Right" resonating globally, the spotlight is on India's pressing need to bolster health insurance penetration to ensure equitable access to healthcare for all.

The recent "Decoding India's Healthcare Wallet: A $100bn Tale" report by Enzia sheds light on the payer-spend dynamics, revealing that a mere 26 per cent of healthcare spending in India is covered by insurance. Private insurance, government schemes, and other initiatives contribute a combined 26 per cent, leaving a substantial 74 per cent of healthcare expenses uncovered.

World Health Day: Data reveals a concerning picture

Report shows that roughly 90 crore people do not have health insurance. However, this coverage is fragmented, with only a fraction benefiting from government-sponsored plans (30 crore), group insurance (20 crore), and personal policies (6 crore). Alarmingly, the remaining 90 crore Indians, lack any form of health insurance protection.

A deeper dive into India's healthcare expenditure unveils the dominance of out-of-pocket expenses, which account for a staggering 52 per cent of total healthcare spending which is one of the highest amongst India’s peers. This high reliance on personal funds places a significant financial burden on individuals and families, often forcing them to forego essential medical treatment or plunge into debt.

World Health Day: Call for mandatory insurance

In light of these revelations, calls for mandatory health insurance provision by employers gain momentum. Employers, as key stakeholders in the healthcare ecosystem, wield significant influence in shaping employee well-being. Mandating health insurance coverage not only safeguards employees' health but also fosters a healthier and more productive workforce.

Anuj Parekh, Co-founder and CEO of Bharatsure, emphasizes the urgency of addressing India's health insurance gap, saying, "The stark reality of India's healthcare landscape underscores the need for concerted efforts to enhance insurance penetration. While government initiatives play a crucial role, it's imperative to recognize the pivotal role of employers in ensuring comprehensive health coverage for employees. Developed markets have been able to achieve very high levels of penetration either by having a robust social security through free and affordable healthcare or by promoting group insurance. India currently lacks the resources to fund free healthcare so our next best option is to promote employer sponsored group insurance that balances the responsibility of health insurance with the industry."

Parekh says that India's healthcare narrative cannot afford to overlook the pivotal role of health insurance in fostering inclusivity and resilience. As the nation navigates the complex interplay of socioeconomic factors and healthcare challenges, he believes that a concerted effort from government, employers, and insurers is essential to bridge the health insurance gap and realize the vision of universal health coverage for all Indians.

In the journey towards a healthier and more equitable society, the Co-founder and CEO of Bharatsure says that World Health Day serves as a poignant reminder of the imperative to uphold health as a fundamental human right, "ensuring that every individual has access to quality healthcare when they need it most".