The need of Exclusive Personal Health Insurance in India Amidst Rising Corporate Health Insurance Costs
Overview
The cost of employer-provided health insurance has significantly increased in India in recent years. This trend raises an important question for workers: is it sufficient to rely only on company health insurance? In addition to exploring the changing healthcare landscape, the effects of artificial intelligence (AI), and the growing burden of critical illness claims on corporate health insurance plans, this blog explores the significance of having exclusive personal health insurance in India.
Note – I write this article with personal experience of consulting with hundreds of professioanls in choosing the right health insurance product. Visit – VenkatFin.com
AI’s role in the Changing Healthcare Environment
The Expanding Impact of AI in Healthcare: The use of AI in healthcare has completely changed the provision of medical services. This translates into easier access to services for workers, such as second opinions and video consultations, which are frequently made possible by their health insurance companies. Insurance companies must make large implementation and upkeep investments in these AI-driven features, which improve healthcare quality and accessibility. Despite its advantages, this technological development drives up the price of corporate health insurance.
AI Tech in Health Insurance Claims Process: Corporate employees are increasingly using AI-powered services provided by health insurers. Health insurance companies have themselves implemented AI technology right from the policy issuance to claims process. Insurance companies will have to spend a lot of money to support and develop these AI capabilities as more employees rely on them, which will unintentionally raise the total cost of corporate health insurance.
Burden from Expensive Claims
Increasing Demand for Critical Illnesses: Claims pertaining to critical illnesses like cancer and cardiovascular disorders are becoming more common among employees in corporations. The financial resources of corporate health insurance schemes are under significant pressure due to the astronomically high treatment costs associated with these illnesses. The cost of corporate health insurance will rise as a result of insurers having to raise rates to cover the rising costs of these high-cost claims.
Impact on Premiums: The high cost of treating serious illnesses has a direct bearing on how much corporate health insurance policies cost. Employers eventually bear the brunt of these growing costs as insurance companies struggle to keep up, which eventually trickles down to employees in the form of higher premiums or fewer benefits.
The Value of Exclusive Medical Coverage
- Persistence Outside of Employment: The continuity of coverage is one of the strongest arguments for employees to purchase exclusive health insurance. Work status and corporate health insurance are intrinsically linked. Employees without personal health insurance are vulnerable in situations such as job loss, job change, or retirement. Uninterrupted coverage is guaranteed by exclusive health insurance, regardless of work status.
- Employee Awareness Gap: A considerable segment of Indian corporate workforce is not entirely cognizant of the advantages associated with possessing a policy that offers exclusive health insurance. Over-reliance on corporate health plans is frequently the result of this ignorance. Employers must make sure that their employees are aware of the benefits of having their own health insurance, which include increased coverage options, customization according to personal health needs, and the guarantee of ongoing protection.
- Tailored Reporting: Exclusive health insurance enables people to customize their plans to meet their unique health needs and circumstances, in contrast to corporate health insurance, which is intended to serve a large population with generalized coverage. For people with particular health risks or needs, this customized approach to health insurance is especially helpful.
Final Thoughts
In summary, even though employer-sponsored health insurance is a great perk, it shouldn’t be your only source of medical coverage. The increasing frequency of high-cost critical illness claims and the rising costs resulting from AI advancements make exclusive health insurance a necessary consideration.
Indian corporate employees need to understand how important it is to have a personal health insurance policy that provides continuity, customization, and extensive coverage. Employers are essential in helping their staff understand the advantages of having their own health insurance, which helps to guarantee that workers are aware of and sufficiently covered for all medical needs.
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