The budget announcement laid it on thick. The National Health Protection Scheme (NHPS), or what the government has chosen to call Modicare, will soon provide health insurance with an annual cover of Rs 5 lakh ($7,813) for 100 million poor families. The scheme’s ambition did not just become living room conversation, it also turned heads in insurance companies’ boardrooms. Consider this. The health insurance industry underwrote premiums worth Rs 30,392 crore ($4.7 billion) in 2016-17, and if the NHPS delivers, it would add policies worth another Rs 30,000 crore ($4.7 billion), approximately. In a single shot.
promises to keep
Can Modicare double the health insurance market?
Outsourcing health insurance is not new; state governments have done it for a decade. So why aren’t health insurers rejoicing at the Rs 30,000 crore scheme
The health insurance industry underwrote premiums worth Rs 30,392 crore in 2016-17, and if Modicare delivers, it would add policies worth another Rs 30,000 crore, approximately
India’s first standalone health insurer Star Health is not keen on participating in any state government’s bids looking for the insurers
Star Health and other health insurers are wary of Modicare because states have either ousted them to build a Trust or delayed payments
The health insurers are willing to participate in the bid at rational premiums only