insurance premium
There is a big relief news for those taking health insurance across the country. The government has resolved the ongoing dispute between insurance companies and hospitals. Now it has been decided that hospital treatment rates will not be increased in the year 2026. This means that treatment will not be expensive next year and health insurance premium may also remain stable.
Government put a stop to rising medical expenses
For the past several months, there was a tussle between hospitals and insurance companies regarding rates. Hospitals said that due to increase in medicines, medical equipment and salaries of employees, they will have to increase their rates. At the same time, insurance companies said that if hospitals repeatedly make treatment expensive, then they too will have to increase the premium, which will put a burden on the common people. The Department of Financial Services (DFS) intervened on this issue and held several rounds of meetings with both the parties. Ultimately an agreement was reached that hospitals would not increase their rates until 2026. In future, if any change has to be made in the rates, it will be done only with the mutual consent of both the parties.
Effect on insurance premium
With hospital rates remaining stable, insurance companies will have no reason to increase premiums. This means that next year people will not have to pay much for their health insurance. In the last two years, health insurance premiums had increased by 15 to 25 percent, which may stop now.
Already got relief in GST
The government has recently abolished GST on health and life insurance. That means now there will be no tax on it. In such a situation, if both hospital rates and insurance premiums remain stable then common people will get great relief.
What are the benefits for policy holders?
- There will be no increase in hospital packages, room rent, surgery or doctor fees in 2026.
- Health insurance premiums may remain stable, which will provide financial relief to millions of families.
- Talks are going on with some big hospital groups, due to which the scope of this agreement can increase further.
- If all goes according to plan, 2026 could be the year when treatment costs no longer outstrip people’s income. At least for some time.