Idea of health regulator under Irda draws flak

The insurance industry is opposed to the idea of a healthcare regulator under the Insurance Regulatory and Development Authority (Irda). Instead, it wants a regulator under the health ministry to monitor the quality of services and pricing offered by hospitals and other players.

The idea of a healthcare regulator under Irda was brought out in recommendations by PricewaterhouseCoopers (PwC) in a white paper released last week. While PwC says the recommendations, including a separate regulator for the the healthcare industry, would help to expand the health insurance sector in the country, industry representatives say the objective of such a regulator should not be confused with Irda’s regulatory role in the insurance sector. The industry fells PwC’s suggestion is an attempt to influence Irda's functioning by the healthcare industry.

“Setting up of a healthcare regulator under Irda is not feasible. The regulator should function under the health ministry, which would be able to regulate all service providers, namely hospitals, laboratories, consultants and pathological doctors. The entire insurance industry has been asking for a health regulator to control the quality of services and the pricing and thus, expand the reach of the sector. No one, however, has suggested that the regulator be under Irda,” M Ramadoss, chairman and managing director, New India Assurance Company Limited, told Business Standard.

The insurance industry feels linking the role of the regulator for services and pricing by hospitals and other players in the healthcare sector, with that of the insurance regulator would not help achieve the desired objectives. The new regulator, under the purview of the insurance regulator, would only consider matters of insurance regulation.