A post from 61-year-old Rajiv Matta has reignited the debate on rising health insurance premiums for senior citizens in India.
“I am 61 years old. In perfect health….. No claim till date. I pay premium for 2 years. Last one was in Jan ’23. It’s renewal time now. The premium has just gone up by 90%,” he posted, tagging government officials and finance ministry and asking, “Anyone from GOI to protect us?”
Matta’s plight mirrors the growing frustration among policyholders facing steep hikes in health insurance premiums, with surveys indicating that over half of insured individuals saw increases of at least 25% last year.
For seniors, the costs are often much higher, leading to financial strain during a vulnerable stage of life.
The rising burden of premiums:
A LocalCircles survey found that 21% of respondents faced premium hikes of 50% or more in the past 12 months, while only 15% reported no increase. Experts attribute the surge to rising medical inflation, which stands at 14%, and the aftermath of the pandemic, which drove up claim volumes for insurers.
Why premiums are skyrocketing:
Insurance experts cite several reasons for the increases:
- Medical inflation and higher hospitalization costs.
- COVID-19 claims surge, which raised insurers’ liabilities.
- GST at 18%, adding to premium costs.
Shilpa Arora, COO of Insurance Samadhan, was quoted in a report as saying, “Premiums rise due to factors like age and the insurer’s claim ratios. Unfortunately, these hikes disproportionately affect senior citizens.”
Solutions for policyholders:
To reduce the impact of rising premiums, experts suggest:
- Opting for long-term policies: Lock in premiums for up to three years to avoid annual hikes.
- Choosing co-pay options: Share medical expenses with the insurer to lower premium costs.
- Porting policies: Switch to insurers offering lower premiums, though this is a short-term solution.
As healthcare costs climb and insurance premiums follow suit, senior citizens like Rajiv Matta are left grappling with tough choices. Without regulatory intervention, many retirees may find health coverage increasingly out of reach.