The right pricing for the National Health Protection Scheme (NHPS), or Modicare, will be an annual premium per family of around INR2,500 ($36.40), an amount which will differ from state to state, according to Mr G Srinivasan, chairman and managing director of state-owned The New India Assurance.
This estimate is more than double the INR1,000-1,200 per annum which government sources have initially hoped insurers would charge for the healthcare insurance scheme which is targeted at 100m low-income households.
Mr Srinivasan said, “Every insurer will quote a viable price because it is a big scheme; and if they don’t quote a viable price, it will hurt them.” He added that insurers would therefore be doing business at the right price, according to a report in the Financial Express.
“Even the government has decided that it will give the right price, which will be decided by the tender mechanism. State governments will float the tender and 10-12 insurance companies will be enrolled by the Centre based on criteria like experience and size, among other things.
“These companies have to quote a price and whoever quotes the lowest price will win the tender and run the scheme. Premium rates will differ from state to state. We cannot have a uniform price across the country, but on an average, the annual premium per family can be around INR2,500. We are looking at around INR200bn as new business from this scheme for the industry.”
The NHPS, which is likely to be launched on 15 August, will provide INR500,000 in annual medical coverage for secondary and tertiary healthcare for a family of five. Previously, sources have said that the scheme is likely to have an annual premium of less than INR1,100 for each eligible household, with the central and state governments saying it should be closer to INR1,050 for every family.