The most important thing for a family’s financial stability is a good health insurance plan. To make sure that one can easily afford it, it is really important to have health insurance coverage.
The founder and CEO of Zerodha, Nitin Kamath, recently discussed the significance of health insurance in one’s own financial path. He mentioned on Twitter that ‘“In 2014, the last year for which data is available, the Avg cost of inpatient care per hospitalization was Rs 26,475 in urban areas & Rs 16,676 in rural. Over 6.3 crore Indians are faced with poverty every year due to health costs alone; according to government estimates,”
The National Institute of Public Finance and Policy analysts estimate that healthcare expenditures cause 8 to 9% of Indians to fall below the poverty line each year, he continued.
Kamath also cited research from India Spend, which asserted that raising awareness of the value of health insurance to all Indian households will be necessary to keep up with the rising expenses of healthcare.
Premiums are growing along with the demand for health insurance coverage, particularly in the wake of Covid. It’s crucial to understand the reductions insurers provide to qualified purchasers in such a situation.
Best available discounts on health insurance premiums
Lifestyle discounts
Anyone who has ever purchased life or medical insurance is aware that the cost of coverage increases if the customer smokes. A non-smoker is likely to receive a 25% discount on the insurance plan as we compare it to a person who doesn’t smoke. Additionally, incentives are given to customers that lead healthy lifestyles. A reputable insurance provider gives savings of up to 25% on healthcare plans as long as the customers’ medical records demonstrate stable health conditions for two years running.
Cumulative payments
The majority of insurers often offer a 5–10% reduction on rates for purchases made in one lump amount for 2-3 years of coverage.
Family discounts
If the primary buyer enrolls extra family members in the health insurance plan, the majority of insurers give discounts on rates. However, these savings do not grow when more family members are included. Family floater plans are such insurance policies that provide coverage for several family members. The discount is often only given once, at the moment the primary buyer adds the first person to the plan. The cost of additional members is not discounted.
Discounts for the waiting period
In many cases, many of the pre-existing conditions are not covered for a predetermined amount of time after enrollment. If customers agree to extend the waiting time, the insurer may offer a 4-5% discount to those without any pre-existing conditions.
Decent credit rating
Eventually, timely bill payment results in improved credit ratings. Customers with credit scores of at least 750 can receive savings of between 5 and 10% from several insurers.
Discounts for women
In an effort to empower women, organizations like Bajaj Allianz and Reliance General provide discounted premium rates to their female members. Discounts ranging from 5% to 10% of the total policy premium are offered with these products. In family floater plans, some businesses also provide savings according to the proportion of female members.
Value-added services
The majority of these reductions take the shape of free health examinations, OPD packages, and other alluring health offerings that aim to transform the current healthcare insurance system. One such instance is Care, which provides a complimentary annual health examination to its covered members.
The reward for a healthy lifestyle
The majority of insurance companies have started rewarding their members who live healthy lifestyles with wellness benefits in an effort to draw in more clients. For instance, one of India’s top insurers offers a 25% discount on rates if medical results from two consecutive tests within a year indicate a steady state of health.
Network Discounts
Insurance companies set up agreements with preferred provider organizations so that their customers may obtain savings on all medical services. The healthcare provider and the insurance provider negotiate these discounts. The network hospital may base its pricing on a percentage discount for each of the services it provides. The policyholder can reduce his medical expenditures by receiving care through a network organization.
Participating in companies’ profit
As their numbers reach a specific value on the profit scale, several businesses give discounts, coupons, and other incentives to the covered members. These coupons can be used at the network’s hospitals and retail locations to pay for prescription drugs or receive medical attention.
