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Introduce Health Savings Account scheme: FICCI-KPMG report

This scheme will act as a catalyst to bring a major part of the population under the ambit of health insurance

ANI  |  New Delhi 

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There is a need for the introduction of a (HSA) scheme linked to a high deductible cover for end-to-end coverage of needs, said a joint report by FICCI-to understand the key imperatives for offering a comprehensive health plan in the Indian market recently.

This scheme will act as a catalyst to bring a major part of the population under the ambit of

Also, the centralised health savings scheme should be managed by a government nominated body or privately managed by insurers with centralised fund management, the report added.

The analysis demonstrates that there exists a significant gap in coverage offered by current products and the need for a comprehensive ecosystem of financed The joint report by and in India has analysed these gaps to develop recommendations on a comprehensive product as well as the role of various stakeholders such as regulators, government, and the insurance industry.

"costs today are going up by the day due to in particular and the only way the gap between rising costs and affordability can be bridged is if the develops a sustainable and viable mechanism," Antony Jacob, co-chair, Committee and chief executive officer and whole time director, Apollo Munich said.

The Indian industry is driven by out of pocket expenditure at 62 per cent of the entire expenditure and health cover is provided to only 27 percent of the population while remaining 73 per cent is uninsured.

"The concept of a could, therefore, prove to be a viable option for creating a corpus for meeting future needs.

This will ensure that more and more people have funds for accessing services, thereby going a long way in realising India's goal of providing to all," Shashwat Sharma, partner and head, Insurance, in India said.

First Published: Tue, December 19 2017. 12:10 IST
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