If you are planning to renew your health insurance any time soon, surely you are aware that the health insurance premium rates have nearly doubled in the last year. Because of this, people buying a new health plan or renewing their existing policy have to shell out additional money for extensive medical coverage.
On average, insurance premiums have increased by 10-15% for the middle-aged group; whereas, there is an even steeper rise in senior citizen health insurance policy premium. Some insurers in India have increased the cost for senior citizen health plans by 100% (especially for those above 55-66 years of age).
Impact of Pandemic-Like Crises on Health Insurance Premium
A significant reason for this steep rise in health insurance premium costs is due to the crises we and the rest of the world have been facing since 2020. Such crises outbreaks are a part of evolution, but it is equally true that they cause serious medical inflation, further affecting the policy costs.
Of course, much like everyone else, the insurers are reevaluating the crisis impact on the treatment and hospitalisation expenses. But since the payouts are the need of the hour, the option left with the insurance sector to combat such crises is by increasing the policy cost.
Other Factors That Affect Health Insurance Premium
While global outbreaks are an obvious reason for the rise in health insurance premiums, there are several factors besides this. Some of these factors include additional expenses like the healthcare workers clocking in two or three shifts at a time, increased costs of sanitisation and precautionary equipment like gloves, masks, headgear, PPE kits, and more.
Also, the on-going impact of the crisis has forced some hospitals to charge very high hospitalisation and treatment fees. This, in turn, has led to an increase in health insurance premiums. As opposed to post-crisis times, the need for elective surgeries has increased recently, further leading to medical inflation in the healthcare industry.
The Regulator and Pricing
Another reason for the increase in health insurance premiums is the coverage expansion ordered by the Insurance Regulatory and Development Authority of India (IRDAI). The regulator, IRDAI, in its latest amendment has made it mandatory to include certain modern treatment methods.
Further, there is a standardisation of exclusions in health insurance plans. This implies that irrespective of the health insurance policy you purchase, certain exclusions remain common. You have to go through the policy documents thoroughly to understand the standard exclusions. Besides, the health insurance providers have increased the premiums to accommodate coverage for the on-going outbreak.
Wrapping it Up!
The health insurance premiums are most likely to be affected by these noteworthy factors. In case you are planning to review your health insurance policy in 2021, it is best to opt for coverage that is sufficient to cover yours and your family’s medical needs.
You can use the health insurance premium calculator to determine the policy cost. The tool helps calculate the health insurance coverage you might need based on yours and your family’s existing medical conditions, lifestyle habits, etc. The health insurance calculator is freely available online on your insurer’s website, Bajaj Health Insurance.
