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Prevention is better than cure. This age old proverb holds a lot of relevance in today's world whenever the health services are being looked at. Post liberalization, the insurance sector in the country opened up for privatization to bridge the gap that the Government of India was unable to fill. India as of today spends around 6% of its GDP on health care of which only 1.75% is provided by the Government and the rest 4.75% by the private health insurers.
The entry of private players in the health insurance market has far reaching effects on the sector as well as the economy of the country. It has led to the development and integration of Third 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. On the other hand, it is moderate for self funded health insurance. One of the reasons why the healthcare costs are rising is that the payment is done by someone else. We are prudent and conservative when we pay our own bills.
Another reason for the increasing cost is the development and introduction of new technologies in medical care due to new diseases and newer health risks.
The cost of healthcare is inversely proportional to its accessibility. The higher the cost, the lower is the accessibility to health services. Either a person is forced to completely let go the health cover or he has to opt for lower coverage due to higher premiums that are being charged to the customer.
India is a growing economy where the gap between the rich and poor is widening day by day. No one solution would be able to tackle the giant of rising healthcare costs. The government, health providers and we people each have a role to play and pay lot more attention to the Preventive and primary health care.
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