In a bid to curb overcharging by hospitals and make health insurance more affordable, India is planning to shift control of its national health insurance claims portal under the Ministry of Finance and the Insurance Regulatory and Development Authority of India (IRDAI), a government source told Reuters.
The move comes amid concerns that private hospitals are inflating treatment costs, especially for patients with high-value insurance policies, which in turn has led to a steep rise in insurance premiums. The current oversight of the National Health Claims Exchange lies with the National Health Authority under the health ministry, though it was developed in consultation with IRDAI.
Health Insurance Premium Growth Slows Amid Rising Costs
The government and IRDAI’s joint review revealed that hospitals are consistently overcharging, especially targeting those with higher health insurance coverage. This practice has significantly impacted affordability, prompting many consumers to let their policies lapse, the source said.
“Strict supervision” of the National Health Claims Exchange under the finance ministry is expected to enhance insurers’ “collective bargaining power” to set fair and consistent treatment rates, the official added.
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The development comes against the backdrop of projections from Aon’s Global Medical Trend Rates Report, which estimates that healthcare costs in India will increase by 13% in 2025, surpassing the global average of 10%. This is up from a 12% increase recorded the previous year.
With health insurance premiums becoming increasingly unaffordable, industry data shows that premium income growth has dropped to 9% in 2024–25, down from more than 20% in the previous year.
