86% of the rural population and 82% of the urban population are not covered by health insurance

More than 80% Indians have no medical insurance though they rely on private healthcare for their medical needs.

More than 80% Indians do not have any medical insurance cover, though they predominantly rely on private healthcare for their medical needs.

Almost 86% of the rural population and 82% of the urban population are not covered by any health insurance, according to the National Sample Survey Office.

The government has brought 12% of the urban and 13% of the rural population under health insurance through Rastriya Swasthya Bima Yojana and similar plans.

Only 12 % households in urban area had some arrangement of medical insurance from private providers. In the absence of health insurance, 75% taps into their savings while more than 18 % borrow. Borrowing is more in rural areas compared to the cities, where the tendency is more to draw from savings and household incomes.

“The private sector provides nearly 80 % of outpatient and 60 % of inpatient care. But the cost of private-sector health care is unaffordable for most Indians,” said K Srinath Reddy, president of the Public Health Foundation of India, in an article published in the July 1 issue of the “New England Journal of Medicine”.

When NSSO compared the cost of care at public and private sectors, it found while the private health care is four times more expensive than government-run hospitals and clinics in general, treatment of specific diseases cost four, five or even ten times more in private hospitals.

Obstetric and gynaecological problems, and child care is ten times costlier to treat in the private sector. Similarly, treatment of injury, gastro enteritis diseases, eye and skin problems and metabolic disorders like diabetes are 5-6 times more costly in private care.

There is huge potential for insurance in India but many of the poorer people will only be able to afford care if universal health insurance happens.