Why Prices of Health Insurance premiums Are Increasing Day by Day?

Health insurance plans are important for a number of reasons. First and foremost, they help protect people from the rising cost of health care expenses. It also supports people with the requirements of their specific health needs and provides peace of mind in knowing that they will be able to afford required treatments or surgeries if needed. In addition, popular health insurance plans like Niva Bupa health insurance can provide financial security during periods when an individual may not have employment income or other sources of regular income. 

We all know that the prices of health insurance premiums are increasing day by day. This trend has been noted in most countries around the world, and it is not only limited to health insurance plans in India. These costs include healthcare claims, healthcare taxes, healthcare investments, etc. The reason for this increase is multifaceted and complex, but there are a few key reasons that stand out more than the others:

• Medical inflation:

Medical inflation, a key problem in the current healthcare system, has been on the rise for a few years now, and it is likely to worsen in the near future. Amongst many Asian countries, India had seen the highest medical inflation rate of 14 per cent in 2021. The main drivers of medical inflation are high Covid claims, as well as lack of government or private investment in healthcare. 

The high Covid claims are essentially a result of the increasing demand for healthcare services, as well as rising prices of medical equipment and other medical supplies. The combination of these two factors has led to an increase in the total amount of claims filed by private health insurance companies. This, in turn, has led to an increase in the premiums that these companies have to collect from their customers. 

• The rise in hospital costs:

The increasing cost of healthcare is one of the most pressing issues today. This problem has been exacerbated by recent advances in medical technology and rising treatment costs, which have caused hospitals to charge more for their services. This rise in medical bills has had a significant impact on health insurance providers, who have seen their premiums rise as a result. 

In addition, insurers have been forced to push up the premium rates of policies that cover hospitalization, due to the increase in benefits that they offer to individuals who are hospitalized. Insurers are struggling to cover these increased costs, and they are increasingly passing along these costs to consumers through higher premiums and co-pays.

The rise in medical expenditure is an important reason to have a proficient health scheme like Niva Bupa health insurance to cover your hospitalisation and treatment costs. 

• Claims stats:

Health insurers have been grappling with increasing claim stats. It is expected to constitute 11 to 12 per cent in the upcoming years. Recent claim stats in India, have had a significant impact on health insurers, as they have led to increased premiums for those who do experience claims. Health insurance providers have implemented claim measures in various ways, depending on the type of provider and health plan they offer. There is potential for further reduction in the impact of claim stats on insurers if measures are taken to comprehensively data and monitor claims. As already said, Niva Bupa health insurance has the highest claim ratio despite this inflation metric. 

Why is health insurance a must?

There is no one-size-fits-all answer when it comes to understanding the importance of health insurance premiums. However, there are a few general points worth noting. First and foremost, health insurance premiums play an important role in helping relieve the financial burden associated with medical expenses. 

Secondly, health insurance premiums provide peace of mind for those who need coverage in case of an accident or illness. Finally, premium payments support vital healthcare initiatives such as research into new treatments and equipment development.

We can’t deny that the continuous rise in premiums and high medical expenses have made healthcare unaffordable for a large number of people in India. Various measures need to be taken in order to bring down the premiums and make healthcare more affordable for citizens. These measures include increasing the number of affordable and quality hospitals, framing policies that would lower medical expenses, and providing subsidies to citizens to make them eligible for these policies. Nevertheless, health insurance plans in India are an important safeguard against the risk of illness and injury. They can also provide a financial cushion in the event of a health emergency. 

However, you do not have to worry about overspending? Top health insurance like Niva Bupa health insurance and Bajaj Allianz health insurance schemes are designed and updated by taking all these fair factors into consideration. The plans and offers provided by Niva Bupa health insurance are fair and affordable even to a common citizen of India. As a result, people can avail of health insurance coverage which comes with affordable premium rates.