Health Insurance Premiums Set to Rise Soon
Insurance companies in India are planning to hike health insurance premiums by 15-20% in light of high COVID-19 claims and medical inflation. While some companies have already increased their premiums, others are expected to announce a hike in the coming months.
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Impact of COVID-19 & Medical Inflation on Health Insurers
The second wave of the COVID-19 pandemic in India has adversely impacted health insurance companies in India. The number of health claims increased drastically last year due to COVID-19, thereby, increasing the insurer’s costs towards claims. As per a Motilal Oswal report, 6% of the total health claims paid in 2020-21 were related to COVID-19. The percentage is expected to go up to 11-12 % in 2021-22.
Moreover, COVID-19 has also changed the treatment protocol for several health issues. These changes have also impacted the insurers’ costs in terms of claims. As a result, insurance companies are looking to increase health insurance premiums by 15-20 per cent.
Medical inflation is also responsible for the hike in health insurance premiums. Several factors such as new advancements in medical treatment & technology, rising medical costs, etc. have led to higher health claims.
At present, ManipalCigna Health Insurance Company and Star Health & Allied Insurance have hiked the premium of their health insurance plans. While the premium of the ManipalCigna ProHealth plan has been hiked by 14 per cent, the Star Family Health Optima premium has been raised by 15%.
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