Health Insurance Rates Vary by Indian States
Health Insurance Rates Vary by Indian States
MUMBAI: In a significant shift aimed at enhancing affordability and relevance, health insurance providers in India are now moving away from uniform pricing models toward state-wise customized insurance policies. This evolution reflects the stark differences in healthcare infrastructure, medical costs, and treatment availability across various states in the country.
Bajaj Allianz General Insurance has taken the lead by launching region-specific health insurance plans. These policies adjust both premiums and coverage benefits according to the cost of healthcare and hospital charges within individual states and union territories. This move is expected to eliminate inefficiencies caused by traditional flat-rate pricing and reduce the burden of cross-subsidization among policyholders.
"This initiative is primarily aimed at increasing coverage among the missing middle class, who often remain uninsured due to unaffordable premiums," said Bhaskar Nerurkar, Head of Health Administration at Bajaj Allianz. "People in low-cost healthcare regions often end up subsidizing policyholders in high-cost areas, which this plan seeks to correct."
While companies like Narayana Health have previously experimented with offering region-tied policies around their hospital chains, Bajaj Allianz’s approach is more comprehensive. It customizes pricing for every Indian state, allowing policyholders to buy plans based on their residence while still accessing treatment anywhere nationwide.
According to Satish Gidugu, CEO of Medi Assist (India’s largest Third-Party Administrator), the frequency and intensity of health claims vary significantly across India. "These differences are influenced by disease patterns, availability of high-end care like tertiary and quaternary facilities, and localized healthcare practices," he said. He emphasized that improved access to data now allows insurers to better understand regional health trends and tailor their policies accordingly.
Bajaj Allianz General Insurance (BAGIC) has ensured that these new health insurance plans cover all Indian states and union territories. The insurer evaluates multiple variables such as local disease outbreaks, government health schemes, and treatment costs before fixing premium rates. This leads to fairer pricing models that reflect the actual risk and cost dynamics of each region.
The shift toward region-specific health coverage in India signals a transformation in the way insurers approach policy design. Not only does this make premiums more affordable for millions, but it also aligns with India's larger goal of increasing universal health insurance penetration. It opens up greater accessibility for the common man while making the system financially sustainable for insurers in the long term.
As healthcare costs continue to vary by geography, state-wise pricing models are expected to become the new norm in the insurance landscape. It’s a much-needed pivot to ensure equitable access to health care, especially in a country as vast and diverse as India.
