Thread by @DeepakRKhemani

Met the Branch head of a prominent stand alone #Health #insurance company. What he said is going to spoil the annual budget of middle class indians more so senior citizens.
A thread🧵
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The discussion was on the sustained and lumpy increase in health insurance premiums in the past few years where senior citizens are now paying DOUBLE of what they were paying 3 years ago.
He gave the example of what's happening with costs negotiated with network hospitals.
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Gall bladder removal surgery in 5* hospitals 3 years ago was capped at 1.25 lakh
The same is up for renegotiation now at 3.25 lakh.
These are figures for Tier 1 metro cities . Many health insurance cos are charging premium basis the city where you stay in.
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He said that the recent price increases are not enough to sustain the company, Health Insurance Premiums Continue to Rise and Will Keep Going Up 📈 year on year for the foreseeable future.
Let's take a look at the reason Why
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Treatment Costs: One of the primary reasons for rising health insurance premiums is the ever-increasing cost of medical care, surgery, hospital stays, prescription drugs, and advanced treatments, This has to be factored in premium calculations.
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Technological Advancements bring immense benefits, they often come at a significant price. New technologies and treatments are expensive to develop, implement, and maintain. These costs are eventually passed on to the insured individuals, leading to higher premiums.
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Senior Citizens tend to require more medical attention, including chronic disease management and specialized care. Insurers have to account for this higher demand, resulting in increased premiums for everyone.
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Health insurance is subject to numerous regulations, Compliance with these regulations often leads to increased costs for insurers, which are then reflected in higher premiums. Regulatory changes or additional mandates can further drive up costs.
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The healthcare landscape is constantly evolving, making it challenging for insurers to predict costs accurately. Factors such as epidemics like covid, lead to unexpected expenses. Insurance companies factor in these uncertainties, resulting in increased premiums.
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Health insurance operates based on the concept of risk pooling, where a large number of individuals share the financial burden of medical costs. When healthy young individuals don't take insurance, the risk pool becomes imbalanced. Insurers compensate by raising the premiums
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Unfortunately all these factors are driving up health insurance premiums and they are unlikely to change significantly in the near future.
So buckle up, plan ahead and hope for the best.
Consult an experienced advisor to help you with your Health Insurance Planning.
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