Health insurance is a crucial investment for individuals and families in India. It provides financial security in case of unforeseen medical bills and helps manage the cost of healthcare. In this post, we will explore the necessity of health insurance in India, the types of health insurance policies available, and the benefits of investing in health insurance.
Health insurance policies also give people access to high-quality healthcare in addition to financial protection. Health insurance customers have the option of choosing a cashless hospital stay at one of the network hospitals, which means they won't be responsible for covering any out-of-pocket hospital costs. For those who do not have a sizable amount of funds to meet medical costs, this option is especially helpful.
People might also receive tax advantages with the aid of health insurance. Health insurance premiums paid up to a specified amount are tax deductible under Section 80D of the Income Tax Act. Policyholders will also profit financially from this.
But the question comes what Justifies India's Need for Health Insurance?
The price of healthcare is increasing in India. The expense of medical treatments, hospitalization, and surgeries can be very substantial, and it is not always possible for individuals to cover the cost on their own.
Individuals and families can depend on health insurance as a safety net in the event of unforeseen medical costs. Hospitalization charges, pre- and post-hospitalization costs, including ambulance fees, are all covered. The costs associated with serious diseases and procedures are also covered by health insurance coverage.
Likewise, the COVID-19 pandemic has underlined the significance of health insurance in India. Due to the high expense of medical care during the pandemic, many people have experienced financial hardship. Health insurance provides financial protection against such unforeseen expenses and ensures that people and families can obtain great healthcare without worrying about the cost.
Types of Health Insurance Provided by the Government of India
PMJAY: Pradhan Mantri Jan Arogya Yojana This program, also known as Ayushman Bharat, offers disadvantaged rural people and families of certain occupational groups of urban workers free health insurance coverage of up to Rs. 5 lakhs per family per year for secondary and tertiary hospitalization.
Rashtriya Swasthya Bima Yojana (RSBY): This program offers up to Rs. 30,000 in annual health insurance coverage to families living below the poverty line (BPL), unorganized laborers, and other vulnerable populations.
Workers' State Insurance System (ESIS): This program covers up to 70% of salaries in cases of sickness, pregnancy, and work-related accidents while also providing medical treatment and monetary benefits to employees and their dependents in the organized sector.
The Central Government Health Scheme (CGHS): This scheme offers comprehensive medical care services, including coverage for both outpatient and inpatient care, to Central Government employees, pensioners, and their families.
Aam Aadmi Bima Yojana (AABY): This program offers rural landless households and families living below the poverty line life and disability insurance coverage, with a cover of up to Rs. 30,000 in case of death or disability as a result of an accident.
National Health Insurance Scheme (NHIS): This program, which is currently being tested in a few states, intends to give unorganized sector employees and their families access to health insurance.
By: Archit Maheshwari
(Student- Shaheed Bhagat Singh College)