When will the finance ministry meet with insurers about health premiums?

The finance ministry will hold a second round of discussions with insurers and hospital groups around mid-January.

What issues are being discussed between the finance ministry and insurers?

The discussions focus on rising medical inflation, increasing health insurance premiums, claim settlement transparency, and healthcare affordability.

What regulatory changes are being considered for health insurance premiums?

The ministry is examining options like mandating prior approval for premium increases exceeding 10% annually.

Home / Business and Economy / Finance Ministry to Meet Insurers on Rising Health Costs

Finance Ministry to Meet Insurers on Rising Health Costs

7 Jan

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Summary

Finance ministry will discuss rising medical inflation with insurers.
A second meeting is scheduled for mid-January with industry leaders.
Regulatory options to curb sharp premium increases are being examined.

The Indian finance ministry plans a second meeting with insurance providers and hospital groups around mid-January to address the persistent issue of medical inflation and increasing health insurance premiums. This session, led by the financial services secretary, will involve the General Insurance Council and the Association of Healthcare Providers (India).

The primary objectives include assessing industry proposals for premium reduction, improving claim settlement transparency, and discussing the role of the Policyholders' Education and Protection Fund. This follows an initial November meeting where concerns about affordability were raised, prompting calls for standardized treatment protocols and efficient cashless claim processing.

Furthermore, the ministry is exploring regulatory interventions, such as requiring prior approval for annual premium increases exceeding 10%, mirroring existing rules for senior citizens. Health insurance currently constitutes a significant 41.42% of the non-life insurance segment's total premiums for 2024-25.