Inflation Proofed Health Insurance
According to PWC, “The pandemic has shifted how and where people gain access to health solution, a shift large enough to influence multiple aspects of price and utilization and, thus, medical cost trend. The aftereffects of the pandemic and the health system’s response to changes and failures observed during the pandemic are expected to drive up spending in 2022. At the same time, some positive changes in consumer behavior and provider operating models that occurred during the pandemic are expected to drive down spending in 2022….”
Cost trends of Health Insurance
Health insurance premiums increase or decrease depending on a policyholder's claims ratio, which has been poor in the last two years i.e. the claim settlement ratio of policyholders has been low. And going forward, it may not ease rather and the medical costs will go up owing to inflation being witnessed in the healthcare industry, as experts said, while also adding that this would translate into further increase in premium costs
Having a health insurance policy is a basic and fundamental need for every individual. However, one needs to plan it in such a way that it helps beat inflation and can deal with any medical emergency without burning a hole in your pocket.
What can you do as a payer ?
Buy adequate cover
Plan for health insurance, as per their family’s medical needs and requirements. Medical history is an important aspect that should be considered. In case consumers already have medical insurance, you should keep track of the renewal period and get their policies renewed from time to time,
Buy early
One of the best ways to beat medical inflation costs is to start as early as possible in terms of age as with healthier lives, there are better chances of getting higher value cover.
While comparing health insurance covers, insurers should bear in mind the room rent restrictions, coverage for consumables and cashless hospital network of choice in close vicinity.
Health systems could provide more healthcare for less money
Health systems can reduce costs through new ways of working
The shift to remote work for some healthcare employees could help reduce costs. Health systems are starting to rethink their real estate spending, too. HRI expects more health systems will revisit how much real estate they need for administrative functions, especially as they increase work-from-home options and reconsider the allocation of space between business functions that typically do not generate revenue and patient care that does.
Health systems can increase efficiency through process automation and cloud technology
Technology-based efficiencies also are being adopted by providers to reduce costs and boost revenue. Cloud services also are growing in popularity as they reduce the physical space and fixed assets of health organizations. They also are an enabling technology that allows employees to work from home.
