By In a concerning trend, healthcare costs in India are escalating at an annual rate of 14%, according to the ACKO India Health Insurance Index 2024. This significant rise is attributed to double-digit inflation in the healthcare sector, making medical expenses increasingly unaffordable for many families. The report highlights that a substantial portion of hospital charges, approximately 23%, are financed through borrowings, placing a heavy financial burden on households. With 62% of healthcare expenses paid out of pocket, the need for better healthcare coverage and financial protection is more critical than ever.
Rising Healthcare Inflation
The ACKO India Health Insurance Index 2024 reveals that healthcare inflation in India is a major driver of the rising costs. Each year, the cost of medical services, treatments, and medications increases, making it difficult for families to manage their healthcare expenses. This inflation is not just a minor uptick but a significant 14% annual increase, which compounds the financial strain on households. The report underscores the urgent need for policy interventions to control healthcare inflation and make medical services more affordable.
The financial burden is exacerbated by the fact that a large portion of healthcare expenses is paid out of pocket. With limited insurance coverage, many families resort to borrowing money to cover hospital bills, leading to long-term financial stress. The report calls for an expansion of health insurance coverage to protect families from unexpected medical costs. By improving insurance penetration, the financial impact of healthcare inflation can be mitigated, providing much-needed relief to households.
Impact on Families
The rising healthcare costs have a profound impact on families across India. The report highlights that 23% of hospital charges are financed through borrowings, indicating that many families are unable to afford medical expenses without taking on debt. This financial strain can lead to significant long-term consequences, including reduced savings, increased debt, and compromised financial stability. The burden of healthcare costs is particularly heavy on middle- and lower-income families, who often lack the resources to manage unexpected medical expenses.
The report also notes that 62% of healthcare expenses in India are paid out of pocket. This high out-of-pocket expenditure is a major concern, as it leaves families vulnerable to financial shocks. Without adequate insurance coverage, families are forced to dip into their savings or take on debt to pay for medical treatments. The report emphasizes the need for comprehensive health insurance schemes that can provide financial protection and reduce the out-of-pocket burden on families.
Regional Health Concerns
The ACKO India Health Insurance Index 2024 also sheds light on regional health concerns, highlighting the prevalence of certain diseases in different parts of the country. Delhi has emerged as the capital for kidney disease, with the highest share of health insurance claims related to kidney health. This trend is followed by Kochi, Secunderabad, Bengaluru, and Jaipur, which also report high numbers of kidney-related claims. The report indicates that the average age of patients claiming kidney and renal problems is 47 years, pointing to a significant health concern in these regions.
In addition to kidney health, the report highlights the rising incidence of heart disease in Kolkata and Mumbai. These cities have the highest claims for heart-related conditions, with a notable increase in hospitalizations for heart diseases among individuals aged 31 to 50. The report also predicts a 13% increase in cancer cases from 2020 to 2025, underscoring the growing burden of chronic diseases in India. These regional health trends highlight the need for targeted healthcare interventions and improved access to medical services in affected areas.