New Delhi: In a fresh push to make healthcare more affordable, the Finance Ministry has instructed insurance companies and hospital groups to adopt a series of measures aimed at reducing medical costs and improving service efficiency.
The directive was issued during a high-level meeting chaired by the Department of Financial Services (DFS), with representatives from major insurers, hospital chains and industry bodies in attendance.
According to officials, the Ministry expressed concern over the rapid rise in medical inflation and the resulting increase in health-insurance premiums. The government has asked stakeholders to work jointly on steps that can bring greater transparency and cost discipline into the healthcare ecosystem.
Key Measures Highlighted
The Ministry has urged stakeholders to move ahead on the following priority areas:
- Standardised Treatment Protocols: Hospitals and insurers have been asked to follow uniform medical protocols to reduce variations in treatment and billing for common procedures.
- Common Empanelment Norms: The government stressed the need for a unified system under which insurers follow similar criteria for adding hospitals to their networks, cutting administrative delays and costs.
- Faster Cashless Approvals: Insurers have been instructed to streamline cashless claim approvals to ensure minimal delays for patients during hospitalisation.
- Digital Processing Through NHCX: The National Health Claims Exchange (NHCX), a digital platform for claim settlement, is expected to be adopted widely to improve transparency and reduce processing time.
- Cost Rationalisation: Hospitals and insurers have been asked to collaborate on identifying areas where costs can be moderated without compromising treatment quality.
Why the Push Now?
Government data shows that medical inflation in India has been consistently outpacing general inflation, leading to increasing pressure on insurers and policyholders. Rising claims have forced insurers to consider premium hikes, prompting intervention from the Ministry to stabilise the sector.
Impact on Consumers
If implemented effectively, the measures could lead to slower premium increases, more predictable hospital bills and improved claim settlement turnaround times. Patients may also benefit from smoother cashless hospitalisation and more transparent pricing.
Industry Reaction
Insurers and hospital groups have acknowledged the government’s concerns but have pointed out challenges such as rising operational costs and varying pricing structures across regions. Industry bodies have indicated that while standardisation is achievable, widespread implementation will require coordinated efforts and time.
What’s Next?
The Finance Ministry is expected to monitor progress closely, with follow-up reviews planned to ensure stakeholders adhere to the recommended reforms. Officials have indicated that further policy steps could be introduced if cost-control measures do not show measurable impact.
