Should health insurance be made compulsory?

The infant mortality rate in India is 10 times that in UK; it is also far higher than whole host of other developing countries (four times that of Sri Lanka, for example). A vast majority of deaths are preventable even with our present level of income. Other key health indicators, particularly maternal mortality and nutrition are equally distressing. Amongst children below five in India, 46% are under-nourished, 36% stunted and 22% wasted. Imagine the impact on each affected family, the depth of the unnecessary human tragedy, beyond the cold statistics.

The magnitude of health crisis has not got the recognition it deserves. Civil society organizations too have not been able to mobilize widespread public awareness. Many people feel that there is a need of an action plan on healthcare.

Government has been looking for alternatives, and people will like to go for ggod facilities even though they cannot afford the cost. For the poor, sickness is not just a matter of physical ill-being but also has a deep and long-lasting economic impact and productivity loss to the nation. It also affects GDP of the country.

Indian model of healthcare has largely been a private-insurance based one and as costs of healthcare will increase so the insurance premium will also increase whether we like it or not.

While the insurance industry is capitalizing on unmet demand and we also have large number of patients through conventional healthcare facilities, there is also a huge potential for technological solutions.

The government needs to leverage the new possibilities and integrate them into a comprehensive healthcare system, rather than stepping back and leaving things only to market forces.

In the recent years the government has done a wonderful job by bringing in RSBY for the benefit of poor people ,who till recently could not afford health insurance policies on their own.

Senior citizens have been complaining about non availability of health insurance of right amount and against payable of right or we can say reasonable premium.We feel now the time has come and Health Insurance should be made compulsory at least for the senior citizens.The positive impact of this will be that this will give a good boost to the insurance industry.

The idea is from the date of start 18 months will be given for all those who are 60 + yeras to get the policy issued. Wide publicity will be given thro various media to popularize this concept. Assume Rs 2000 per person per year is given as subsidy for first 2 years.

Let us assume 200 Lakhs senior citizens avail the offer and Rs 6000 is the premium then Indian insurance industry will get additional revenue of Rs. 12,000 crores. The insured senior citizens will pay Rs 4000 while the balance Rs 2000 will be paid by the governement.

The present figure of Rs 6600 crores will be going up by Rs 12000 crores and this will take the Health Insurance Industry to new heights .We are sure the portfolio will become profitable as at present only those who are expecting to lodge claims buy insurance. This will give boost to GDP, health care infrastructure and employment to large number of doctors/nurses .technicians, IT personnel.

Let us try to push this idea and improve the health of our health insurance industry. Your comments will be appreciated.