One main reason – Why Premium of Health Insurance Policy Increases so quickly …

One main reason – Why Premium of Health Insurance Policy Increases so quickly …

December 17, 2017 0 By HealthInsuranceIndia

A Health Insurance Policy of Star Health for 2 Adults and 2 Children used to cost 7000 in 2010 and Now it is 15500, Why premium increases so much, Is it really medical Inflation.

Even Govt of India has decreased medical costs for Stents and Knee replacement, still the premium are so high.

See this report from

Fortis hospitals always have been involved in expensive treatment issues. Recently this medical brand has made the headlines for overpriced treatment of the dengue patient. Whereas the Fortis Healthcare stated that they have not charged extra amount for drugs and billed only printed MRP (maximum retail price).

This is the matter of Gurugram based Fortis Hospital. Adya, the seven-year-old girl who was suffering from dengue and her health condition, was severe. She went under the treatments for two weeks in the hospital and instead of the many efforts done by doctors, she couldn’t survive and died.

The hospital charged the parents the whopping amount of 16 lakhs for the two-week treatment. The National Pharmaceutical Pricing Authority (NPPA) stated the Fortis hospital charged around 1,700 percent margin on drugs and consumables which used in the treatment of Adya.

Whereas the hospital authorities stated on Saturday that they had not violated any drug price control norms in the case of Adya. The healthcare group said this after the NPPA’s statement.

The incident spread a great deal of outrage that J P Nadda,  Union Health Minister of Haryana inquired a report from the hospital and the Haryana government also formed an inquiry team of three members for the investigation of the case. The team investigated the conditions in which the girl died in September. They also presented the report to the state government this month. The report mentioned that the case was filled with the various irregularities including the protocols, the healthcare group didn’t follow.

The hospital group said in the statement that the hospital’s end price for the patient was in order and almost same like any other private hospitals in the country. Where the prices of individual items drive the margin/profit topic out of context. Therefore, to understand the total business profit scenario, Fortis Hospital business’s financial margins should be observed.

The healthcare group further added that the managing profit such as EBITDA (Earnings before interest, tax, depreciation, and amortisation) was up to 5 to 6 percent for the past four reported quarters and a contrary PAT (profit after tax) also reported by Fortis at the same time. Also, the hospital authority denied all the accuses of billing the huge amount as they said that patient’s family was informed about the bill on a daily basis. So there is not any such activity involved like asking for the big amount at the billing time.

However, as per the NPPA reported that items such as syringes, gloves, and towels were included in the consumables. They also revealed the prices on which Fortis obtained the medicines from distributors and the maximum retail prices at which the hospital charged the family. The highest amount was of each drug and consumable which charged by the hospital group was included in the office memorandum revelation.

As per the reports, the highest mark up was in the consumables around 1,737% and 96 types of consumables used by the patient during the treatment. Such as disposal syringes were billed at the price Rs 200 where the hospital got the same product for Rs 15.29. For the bed bath towels and wipes, the mark-up was around 942 percent as the family forced to pay Rs 350 where the hospital obtained from the retailer at Rs 33.60. The actual price of oxygen masks was Rs 24.68, and the hospital charged Rs 190. Where the sterile surgical gloves and unsterile examination gloves procured by the group at Rs 9.86 and Rs 1.34 respectively. The family forced to pay Rs 75 and Rs 9.50 sequentially. Well, this is 609 percent mark up in the prices.

Meanwhile, the medicines which were under price control, the hospital charged extra between 5% and 350% and the drugs which were not under price control, the hospital charged between 10-200% more.

It is not the first time the hospital has been accused of overpriced treatments, drugs and consumables. Though it is yet to be proved that the hospital is guilty in such issue or not.

Everybody is aware of such malpractices in Private Hospitals. There must be some audit , or Even Audit guys are also corrupt.

No wonder, Soon that 7000 policy will cost 25000 in 5 years…

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