India plans insurance reforms to rein in healthcare costs, sources say

Business Recorder reported, citing two sources, that India is weighing broad reforms to health insurance, including benchmarked treatment rates and a nationwide claims exchange. The push aims to improve transparency as authorities try to contain medical inflation, which industry estimates put at about 12% to 14% a year. A panel chaired by the head of the Insurance Regulatory and Development Authority of India is due to deliver proposals before the year ends, with rollout to follow later.

The reform ideas include a single standard health insurance product that all insurers must sell alongside current plans, plus a defined set of treatments eligible for cover. A national claims exchange, built by the health ministry together with the insurance regulator, is meant to give hospitals and insurers a shared format for claims and billing data, with the aim of faster settlement. Industry figures cited by one source put the share of unwarranted or fraudulent health claims at between 10% and 15%.

The reforms come as India seeks wider participation in insurance, where spending stands below 4% of GDP against a global average above 7%. A parliamentary committee report last week showed private hospital stays averaged about $530, compared with $70 at public facilities.