Health Insurance for Older People

As the collective voice of India's grey population, HelpAge would like to see certain modifications in the health insurance sector to bring about parity for the elderly. We have made the following recommendations to the government:

Social Pension cum Health Insurance

At present social pensions are allocated at Rs 200 a month for older citizens below the poverty line. It is requested from the Government that an increased sum of Rs 50 per month be added towards health insurance and paid to GIC or NIC so that senior citizens in the lower economic strata can be covered for universal health insurance. This will help provide both social and health security for the poor elderly.

Health Insurance for other socio economic segments

Improve present Health Insurance Schemes as per the requirements of the senior citizens to offer whole life coverage and no bar on entry age.

Suggestions

• Discuss with the private companies to work out realistically the expenditure involved in extending these services to older persons and then find ways of sharing that expenditure with others like state, family, company and the individual.
• Introduce community based/ cooperative models of health care, where the members manage it by self-financing the facility.

• A Medical Claim policy at a young age (before age 50) continues by yearly renewal. It is compulsorily terminated at age 80, after which no health cover insurance is provided. Thus the medical insurance cover is forcibly withdrawn at age 80 when it is required most.

  Insurance Regulation and Development Authority (IRDA) may be asked to enforce a uniform policy on all Insurance Companies, particularly Government owned companies, to continue medical insurance for whole life at a commensurate premium.

• The cut-off age of 55, after which no fresh medical insurance policy is provided is arbitrary and unjustified. It discriminates against older persons. Instructions need to be given by IRDA to the insurance companies to remove this bar.
• There is no clarity or transparency in fixing the rates of premium on medical insurance policies. They are at times arbitrarily increased on basis of age or claim experience. There should be some rationale on fixing premiums. IRDA may be asked to look into the fixing of reasonable premiums for health insurance policies for older persons.
• Community based/ cooperative modals of health care, where the members manage it by self-financing the facility should be looked into.
• The Government controls four insurance companies (United Insurance Co., Oriental Insurance Co., The New India Assurance Co. & National Insurance Co.) which should be directed by Department of Economic Affairs, Ministry of Finance. Their representatives may be encouraged to work for medical insurance policies for older persons.