Whenever there is any kind of health challenge, the first thing that comes to mind is health insurance. Isn\’t it? Health insurance has become a necessity in today\’s times, but have you ever thought about how the health insurance system is in our India and how is it different from the health system of developed countries like US, UK and Canada? In today\’s article, we will understand about it in a simple way and compare the health insurance systems of these countries.
1. India’s Health Insurance System
India is currently in a developing phase of health insurance market. Most people take private health insurance or take benefit of government schemes.
Private Health Insurance
Many private companies in India provide health insurance policies such as HDFC Ergo, ICICI Lombard, Star Health, Apollo Munich, Niva Bupa etc. or nationalised companies such as Oriental Insurance, National Insurance, United and New India Insurance Company.
In these plans, hospitalization, surgery, doctor\’s fee, medicines, and sometimes OPD cover is also given and today many new riders can also be taken along with it.
The premium amount is decided according to age and by looking at family members, health condition, extra riders…
Government Schemes
Government-sponsored schemes like Ayushman Bharat (PMJAY), CGHS (Central Government Health Scheme), ESI are being run.
These schemes mostly cover low-income people.
Ayushman Bharat provides free treatment of up to ₹5 lakh in selected hospitals.
Major Problems in India
There is a lack of awareness, people understand the importance of health insurance but do not keep it a priority
Penetration is still low (only 30-35% of the population is insured) but slowly people are increasing..
Claim settlement process sometimes becomes tedious.
There is a waiting period for pre-existing diseases.
2. Health Insurance System of the United States
The US health system is a bit complicated and quite expensive.
Private Insurance Dominates
Most people are insured through private insurance companies.
Employer-provided insurance is common.
Government programs like Medicare and Medicaid are for senior citizens and low-income people.
Premiums and Costs
Premiums are very high in the US.
There is a concept of deductibles and co-payment, in which the patient also has to pay some money.
Problems
Healthcare cost is the highest in the US.
If there is no insurance, it becomes difficult to get treatment.
Bankruptcy cases increase due to healthcare bills.
3. Health Insurance System of United Kingdom
UK\’s National Health Service (NHS) is famous all over the world.
Free Healthcare
Everyone gets free healthcare through NHS.
It is funded by tax money.
Private insurance is optional, mostly taken for faster treatment.
Advantages
Every citizen gets free treatment.
Medicine cost is also subsidised.
Challenges
Long waiting times for non-emergency treatments.
Funding pressure remains on the government.
4. Health Insurance System of Canada
Canada also has a Universal Health Care system which operates at the provincial level.
Universal Coverage
Every citizen has the right to healthcare.
Treatment is free in government hospitals.
Private insurance is mostly taken for dental and eye care.
Advantages
Everyone gets equal access.
Emergency care is absolutely free.
Challenges
Waiting periods are sometimes longer.
Tax burden is a bit high.
5. Overall Comparison Table
6. Conclusion
Every country\’s health insurance system works in its own unique way.
There is still a need to increase awareness and penetration in India.
In the US, the cost is quite high but the facilities are top class.
UK and Canada have a universal healthcare system that covers everyone, but waiting time is an issue.
If you live in India, taking private health insurance can be a smart decision because health emergencies can come at any time.
If your health insurance plan is right, you and your family remain financially secure.