Narayana Health, which is known for affordable healthcare, has launched a new health insurance plan called Aditi. This insurance has an annual premium of INR 10,000. Aditi insures a family of four. It covers surgery costs up to INR 1 crore and other treatment costs up to INR 5 lakh. Along with this, they also give discounted diagnostic tests at Narayana Health hospitals.
Initial Launch and Expansion Plans
At first, Aditi will only be available in four districts around Mysore. Narayana Health, which has hospitals in multiple cities including Gurugram, Ahmedabad and Chennai, is expanding its reach to offer this plan more widely.
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Benefits of Prevention
There is a simple strategy behind Aditi, that “prevention is better than cure”. They are offering subsidized diagnostic tests. With this, the hospital, the insurer and the patients, they all benefit. Regular check-ups can catch problems early. This can reduce the need for expensive treatments later.
Hospital-Owned Insurance Concept
The idea of a hospital-owned insurance plan is not new. Similar models exist in the US. There, the hospitals manage healthcare schemes. This combination can lead to quicker processing and better synergy, without the hospital overcharging patients.
Focus on Hospitalization
A common issue with health insurance in India is the focus on hospitalization. Many health problems like hypertension and diabetes require regular check-ups. Mostly, they do not require hospital stays. Even though Aditi is reasonably priced, it still focuses heavily on hospitalization. It has a generous INR 1 crore limit for surgeries.
Potential for Overuse of Surgeries
Dr. Devi Shetty, founder of Narayana Health, has pointed out that many deaths in developing countries are due to the unaffordability of surgery. Surgery can be crucial, but it’s not a cure-all. There is a risk that patients might seek unnecessary surgeries because they are covered by insurance.
Comparisons with Ayushmaan Bharat
Aditi could serve those not covered by the government’s Ayushmaan Bharat scheme, which also has an INR 5 lakh cap but covers five family members. Aditi covers four members. Both schemes have similar limits but different structures and benefits.
Challenges with Hospital-Based Insurance
One issue with hospital-operated insurance plans is that they often require patients to use their own hospitals. Especially during the pandemics when hospitals are overwhelmed this can be limiting. Patients might also prefer doctors outside the hospital chain.
Avoiding Common Insurance Pitfalls
For both Ayushmaan and Aditi, it is important to avoid common pitfalls like excluding pre-existing conditions or having long waiting periods. Insurance should also cover common issues for the elderly, like dental and cataract treatments. Issues like these are often excluded.
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Carrying Forward Unused Benefits
Unlike Ayushmaan Bharat, Aditi requires a premium to be paid. Any unused benefits should be carried forward for this insurance. A no-claim bonus should be offered, to make this more appealing.
Narayana Health’s Aditi plan offers a new approach to health insurance in India. It focuses on affordability and prevention. It must address the challenges of hospital-focused coverage. It also ensured to meet the diverse needs of its insured families.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
