Assessing Private Health Insurance in India

The entry of private health insurance companies in India is likely to have an impact on the costs of health care, equity in the financing of care, and the quality and cost-effectiveness of such care. However, an informed consumer and well-defined and implemented insurance regulation regime will ameliorate some of the bad outcomes. Regulation relating to benefitpackages, restrictions on risk selection and consumer protection would be clearly useful; also required are improved enforcement of regulatory regimes, creating large insurance buyer groups, and better coordination between IRDA and other regulatory bodies. New legislation in improving standards in health care provision may also be needed.