The health insurance forum, constituted by Insurance Regulatory and Development Authority (IRDA), is set to bring in drastic changes. It is ready to recommend that the hospital fees charged to the patients with mediclaim policies need to be capped. The fees which hospitals charge would be capped depending on the type of disease and the class of the hospital. This is aimed at reducing medical charges for the insured, as hospitals in India tend to overcharge patients in case of cashless mediclaim policies.
The forum is set up to promote health insurance sector in India. It would help in evolving policies and processes for the sector. The forum is now set to bring in radical changes. For example, it is also planning to cap the rate of increase in premiums at the time of claim renewals. Also, life insurers should issue policies with a minimum period of five years. On portability, the industry is talking about standardising the policy wording, with a strong data-exchange system to control frauds.
Other changes being considered are removing the entry age barrier in health insurance policies, which would benefit senior citizens. Currently, for most existing health insurance plans, the entry age is limited to 65 years. These recommendations are expected to be implemented by the next financial year.