Govt-Funded Healthcare Can’t Work in Countries with Large Populations
W Health Enters Health Insurance
W Health has become the first Indian hospital chain to enter the health insurance sector. In a conversation with ET’s KR Balasubramanyam, NH founder-chairman Dr. Devi Prasad Shetty discussed the challenges and potential of health insurance in India.
Trust Deficit in Health Insurance
Dr. Shetty highlighted a trust deficit between hospitals, patients, and insurance companies in India. He explained that less than 5% of the insured are diabetic, which is inaccurate. Insurance companies rely on declarations without preventive health checkups, often disallowing claims post-hospitalization.
Aditi Scheme for Preventive Healthcare
The pilot Aditi scheme offers preventive health checkups at no cost, with 24×7 health monitoring. If a health concern arises, patients can use the app to contact doctors for immediate assistance. Initially launched in Mysuru, the scheme will expand to Bengaluru, Delhi, and Kolkata.
Financial Investment and Licensing
W Health has allocated 200 crore for the initiative, facilitated by a swift licensing process from IRDA. Dr. Shetty is optimistic about the widespread adoption of health insurance, focusing on a segment close to the company’s heart.
Government’s Role in Health Insurance
Dr. Shetty suggested that the government should introduce tax-free health savings accounts and encourage wealthy families to gift insurance premiums to employees. He emphasized that no government can fully fund healthcare due to increasing life expectancy, making low-cost insurance essential.
Limitations of Govt-funded Healthcare
Government-funded healthcare works well in countries with small populations but struggles in larger populations. Dr. Shetty cited the UK’s current distress as an example.
Reducing GST on Health Insurance
Currently, health insurance premiums attract 18% GST. Dr. Shetty is confident that the government will reconsider this rate, and he plans to advocate for a reduction.
Increasing Medical Education Seats
Dr. Shetty urged the NDA government to increase medical seats to make medical education more accessible. He proposed using existing infrastructure like district hospitals to expand capacity without additional costs.
Addressing Global Healthcare Worker Shortage
With a global shortage of 80 million healthcare workers, Dr. Shetty emphasized the need for India to plan for global demand. He suggested leveraging super specialty hospitals for PG training to fill this gap.
