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The healthcare industry in India is emerging at a rapid pace. It is now developing as a tool to manage the financial needs of people who seek health services. Individuals seeking healthcare insurance pay premiums and are insured for any surgical or medical expenses incurred by them. However, due to inflation and other factors, healthcare providers are passing on the ever-increasing costs to the policyholders.
Reasons for the increasing costs of health insurance premiums are:
Age is an important contributor to health insurance rates. The cost of premiums is generally lesser for youngsters as compared to older policyholders. This is due to the fact that young people have fewer and less diagnosed health problems, and hence are less likely to develop any health issues. So much so, that some insurers do not provide health coverage if you have crossed a particular age.
The premium charged may be higher for those individuals who have a family history of diseases or ailments. If your family members are diagnosed with a serious illness, there is a high probability of you developing the disease. In such a case, the insurer may either charge a higher premium or may exclude that particular condition from the cover.
Increase in chronic conditions
Individuals suffering from chronic conditions are vulnerable to the increasing out-of-pocket medical spending. The number of people suffering from chronic conditions like heart problems, cancer, diabetes, high blood pressure and stroke is on the rise. In such a scenario, choose a plan that meets your needs, in order to escape higher premiums. Calculate the premium payable using a health insurance calculator to avoid extra payments.
According to a recent study, the healthcare inflation in India is almost 20% higher as compared to the overall inflation of 8-9% in the past few years. In spite of technological advancements, the cost of medical equipment and robotics is soaring, the cost of which is then passed on to the patients. Also, the shortage of good doctors and surgeons create a demand-supply gap which in turn, increases costs.
The amount insurers pay vs. the amount they receive
Over the years, the amount paid as claims has risen at a higher rate as compared to the premiums received. Hence, insurers adjust their tariffs in order to fill the high healthcare costs and the premiums received. They cannot indefinitely cover the difference using their reserves. Ultimately it’s the policyholders who have the bear the brunt of shelling out more.
Demographic of those insured by the insurance company
Demographic factors like gender, marital status, profession, etc. affect the healthcare costs. Women usually pay higher than men for three reasons, according to experts: frequent visitation to the doctor, prescriptions and subject to certain chronic diseases. The nature of an individual’s job also affects premium costs. Policyholders exposed to harmful chemicals have a greater risk of contracting any illness. Also, people working in sedentary professions have an increased risk of getting a cardiovascular disease.
High physician fees, increasing administrative costs, expensive drugs and procedures are some other factors that may result in higher health costs. Also, insurers may charge you a higher premium if you are purchasing insurance for the first time.
How Can You Calculate Your Premium?
It is important to be smart while making a choice about a health insurance plan. In order to avoid unwanted spending, you may adjust your health coverage. Calculate the premium payable using a mediclaim premium calculator. It helps to compare plans of different insurance companies on a single platform. A health premium insurance calculator also helps you get quotes efficiently, unveils good plan options and assists in purchasing the best health plan. It’s all about knowing how to put a curb to rising premiums and staying safe.
About HDFC Health:
HDFC Health is an initiative by HDFC Life, a life insurance company in India to help increase awareness, spread knowledge and enshroud myths surrounding the health insurance sector in India. As a wholly owned subsidiary of HDFC Life, HDFC Health offers health insurance policies in India that cover individual, family floater, critical illness and cancer care insurance plans.
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