What you can do to reduce your out-of-pocket expenditure on healthcare
Healthcare expenses can be a huge burden on an individual’s finances in India. Medical emergencies can arise at any time, and people may have to shell out a substantial amount of money from their pockets to avail medical care. The recent pandemic has highlighted this fact more than ever, with many people struggling to meet the medical costs of themselves and their loved ones.
A report by the National Health Authority (NHA) shows that the average out-of-pocket expenditure (OOPE) on healthcare in India is approximately 62%. This means that most people have to pay for healthcare services entirely on their own, with little or no financial assistance from insurance or government schemes.
To make matters worse, healthcare costs are continuously increasing in India. The high costs of medicines and medical procedures, coupled with the lack of access to affordable healthcare services, result in a scenario where people have to spend a considerable amount of their income on medical expenses.
However, there are ways by which individuals can minimize their OOPE on healthcare. Below are a few methods that can help individuals reduce their medical costs:
Preventive Measures: Prevention is always better than cure; hence, taking preventive measures to avoid any illnesses or diseases can save individuals a lot of money. A few preventive measures that individuals can take are:
- Eating a balanced and healthy diet
- Regular exercise and physical activity
- Adequate rest to ensure good sleep
- Regular health check-ups and screenings to detect any potential illnesses or diseases early on.
Health Insurance: Health insurance is an investment that individuals must make to secure their medical future. A health insurance policy can cover most of the medical expenses, reducing the financial burden on individuals. When selecting health insurance, individuals must consider the following:
- Choosing the right sum insured
- Choosing the right policy type – individual or family floater
- Adequate coverage for pre-existing illnesses, maternity expenses, and critical illnesses
- The policy’s exclusions and limitations
- Claim settlement ratio of the insurance company
Discounted Services: Individuals can save a considerable amount of money on medical costs by availing of discounted services. Some ways to save money on medical procedures and tests are:
- Availing of packages offered by hospitals or laboratories
- Comparing prices of labs and hospitals before availing of any services
- Using coupons or discounts offered by insurance companies or health service providers.
Online Medical Services: With the emergence of telemedicine and online consultation, individuals can avail medical services from the comfort of their homes. Online medical services can help save time and money by avoiding the need to travel and pay expenses like transportation, consultations, and prescriptions.
Government Schemes: The Indian government has implemented several schemes to ease healthcare expenses. Below are some government schemes that individuals can take advantage of:
- Pradhan Mantri Jan Arogya Yojana – also called Ayushman Bharat, provides free healthcare to the financially weaker sections of the society.
- Pradhan Mantri Suraksha Bima Yojana – provides accidental and disability insurance to individuals by paying a premium of Rs. 12 annually.
- Pradhan Mantri Jeevan Jyoti Bima Yojana – provides life insurance to individuals by paying a premium of Rs. 330 annually.
- National Health Insurance – provides insurance to the below poverty line people and their families.
In conclusion, healthcare expenses can be a significant burden on individuals’ finances, but taking preventive measures, selecting the right health insurance policy, availing of discounted services, using online medical services, and making use of government schemes can help reduce the out-of-pocket expenditure on healthcare. It is imperative that individuals understand their healthcare expenses and take necessary steps to minimize them.