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Prevention is preferable to cure. This age old proverb holds a great deal of relevance nowadays whenever the health services are being looked at. Post liberalization, the insurance sector in the united kingdom exposed for privatization to bridge the gap that the federal government of India was unable to fill. India currently spends around 6% of its GDP on health care of which only 1 1.75% is provided by the Government and the rest 4.75% by the private health insurers.
The entry of private players in medical insurance market has far reaching effects on the sector along with the economy of the country. It has resulted in the development and integration of ALTERNATIVE PARTY Administrators (TPAs) to the health sector. Over a period of time, it has brought several challenges - primarily the rising costs of health services.
The price rise is considerable for the services managed by the TPA's. However, it is moderate for self funded health insurance. One of the explanations why the healthcare costs are rising is that the payment is performed by someone else. We are prudent and conservative when we pay our very own bills.
Another reason for the increasing cost is the development and introduction of new technologies in medical care because of new diseases and newer health threats.
The expense of healthcare is inversely proportional to its accessibility. The bigger the cost, the lower is the option of health services. Either website is forced to totally let go the health cover or he has to opt for lower coverage due to higher premiums that are being charged to the client.
India is really a growing economy where in fact the gap between your rich and poor is widening day by day. No one solution can tackle the giant of rising healthcare costs. The federal government, health providers and we people each have a role to play and pay lot more focus on the Preventive and primary healthcare.
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