Performance Evaluation of Health Insurance: Ways for Winning Confidence

Abstract

Health is a fundamental force that decides the overall quality of human life. The health of the population is a vital and essential issue for any country. The new National Health Policy of India (2017) emphasizes the growing burden of non- communicable diseases and corresponding growing expenditure. Indian Government announced the world's most massive health scheme, the Ayushman Bharat Yojana, in 2018, which is a significant step towards attaining universal health coverage in India. This scheme provides a cover of Rs.5 lakh per family per year for various medical procedures. Although India's Government is taking many such initiatives to improve public health, a lot more needs to be done to attain universal coverage. Out of pocket expenditure paid by individuals towards health care in India ranges at a high percentage over the years. Although health insurance premium has shown an increase over the years, there is no drop in this expenditure. This study shows the phenomenal growth achieved by health insurance, specifically after privatization, premium growth, and improvement in claims ratios. It is suggested that the insurance companies should modify the coverage of health insurance policies so that the uncovered expenses are reimbursed during hospitalization. Insurance companies also should shift their focus towards wellness instead of covering sickness to keep their businesses sustainable in the long run.