Wednesday, November 24, 2010

How insurance gonna raise health care cost

The insurance in health sector is on the rise in India. It is indeed beneficial to the patients, when a disease strikes and huge expenses are incurred in the treatment. Treatment cost is usually not considered in a family's budget and they are often caught unaware and left devastated by a sudden disease.

But, there are problems we are gonna have with insurance. People pay premium and think it's their duty to utilise the insurance to the maximum. People seek unnecessary treatment, do investigations without proper indications, and seek expensive treatments. This would raise the total per-capita treatment cost. All expenses are inturn recovered by the insurance companies from the people, by raising the premium.

As the time goes by health care costs will rise. People will hardly question the value for money of the treatment, as it looks free to them. Insurance will become must or an unexpected disease will be totally devastating, more than it's now. The insurance will only be available at high premium, that's a big proportion of family's monthly income.

The only people who gain from this will be large corporate hospitals.
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