(Image source: Cigna.com)
Healthcare Insurance sector in India is set for exciting times with the proposed entry of US based Healthcare giant Cigna. Cigna based in Bloomfield Connecticut has revenues of close to $19 billion globally. To enter India Cigna has formed a joint venture with India based TTK Healthcare which was founded in the 1920’s. TTK healthcare is already present in the Healthcare insurance as a third party administrator a business they would have to close down in order to formalize this JV.
Only 10% of Indians are covered by Insurance of any kind. Almost 2% are covered by private insurers and 8% through state and central government schemes. So there are almost 90% of the people without insurance in the Indians Healthcare market and they mostly pay for healthcare expenses from their private pockets.
For the US private healthcare insurers are sometimes blamed for the spiraling healthcare costs. But one has to wonder if the entry of private insurers in India will do the same?
Recently my wife availed her company sponsored private insurance for the birth of our first child. The total bill was more than that we would have to pay if we had paid from pocket.
So the question is does India need Private Healthcare Insurance ? Can we afford it?