In 2007, the Govt. of India (Congress as the ruling party) eliminated the benefit of cross-subsidy on Health Insurance. These are the impacts. A 200% rise in insurance costs is the impact. Read on-->
Impact of removal of Insurance Tariffs
• Elimination of tariffs on non-life insurance industry in 2007
results in rise of medial insurance premium in India.
–Medical insurance is no longer cross-subsidized as
– Before was cross-subsidized with coverage like auto, fire,
– Steep increases in Insurance premiums.
• Employers seek cost reduction options as a result of high
medical cost inflation
– Leading to reductions in:
• Dependants coverage
• Sum assured and
• Increases in member contributions
Provider and Insurer issues
• Accelerating hospitalization costs – Room Rent, Surgery
Charges, physician consultation charges, Investigation
Charges, Medicines etc. leading to high claim ratios
• High Claim Ratios directly proportional to premium
• Volatility in Rates between one hospital to another
• In past, price negotiation primarily by cross-subsidizing
Health Insurance through other profitable lines of
• Dependent care is a growing concern
Premium Increase Trend
Year Premium per employee(INR) Increase % from 2005 Base premium
2005 -2006 5109/-
2006-2007 8178/- 60%
2007-2008 10674/- 109%
2008-2009 12280/- 140%
2009 - 2010 14659/- 187%
The Congress Hand is surely for SLAPPING people.
This is just ONE reason why you should not vote for the Congress.
There are many more. Hope I will be able to find the time to let you know the others.