Authored by Amit Chhabra

Live TV

Loading...

In the month of June, several state governments including Delhi, Telangana, Tamil Nadu, Rajasthan and Maharashtra capped the prices of COVID-19 treatment at listed private hospitals. This was implemented as an attempt to ease off the burden of hefty hospital bills for the treatment of coronavirus infection.

It was believed that the initiative will prove to be a great relief for the people who are reeling under severe coronavirus outbreak. However, things seem to be totally different. As per a recent report in a leading English national daily, even after the capping of COVID-19 treatment costs, over 80 percent of families in the country would be financially crippled by a single member of the family undergoing treatment for COVID-19 at a private hospital. And this is because the monthly expenditure of more than 80 percent of the families in the country is way less than what hospitals are charging – even after capping – for a 10-day treatment of the novel coronavirus.

What the Report Says

As per the findings of the latest Household Expenditure Report published by the National Statistical Office, the monthly spending per person in the country in more than 80 percent of the families is between Rs 5,000 – Rs 25,000 for a family of 5. But the cost of an isolation bed in a non-accredited hospital is more than three times the monthly spending.

For instance, in Delhi - which has one of the highest monthly per capita expenditures in the country i.e. Rs 25,000 - the lowest-priced isolation bed costs Rs 80,000 for ten days of treatment which is more than three times the monthly spending. And for a patient who gets admitted to an ICU ward without a ventilator, the cost reaches Rs. 1.3 – Rs. 1.5 Lakh and with a ventilator the cost comes anywhere between Rs. 1.5 – Rs. 1.8 Lakh.

Similarly, in Punjab, where the monthly spend of over 80 percent of families is around 18,000, a 10-day isolation bed in the state costs between Rs. 80,000 – Rs. 1 Lakh while the charges for ICU without a ventilator and with ventilator are Rs. 1.5 Lakh and Rs. 1.8 Lakh respectively.

In Haryana, the monthly spend is Rs. 14,165 while the isolation bed charges for 10 days are between Rs. 80,000 – Rs. 1 Lakh. A 10-day isolation bed in Maharashtra costs Rs. 40,000 where the monthly spend of most families is limited to Rs. 10,000. The ICU ward without a ventilator in Maharashtra costs Rs. 75,000 while one with a ventilator costs Rs. 90,000. Under all these cases, the bill can reach several lakhs if the treatment stretches for 2/3 or more weeks.

Quest for Best Treatment

In all states across the country, the treatment for COVID-19 is being offered free of cost at the government hospitals. However, with reports of poor conditions in these hospitals and hospitals running to full capacity, most people are avoiding taking treatment at government hospitals. Even if people have to break through their savings to avail of the best possible treatment, they are not hesitant to do so.

Moreover, one of the United Nation’s prime objective of sustainable development is to prevent people from catastrophic spending on healthcare. As per the guidelines issued by the UN, if in a family, the share of expenditure on health in the total annual household expenditure is more than 10 to 25 percent, it is categorized under catastrophic expenditure. For the treatment of COVID-19 in most states in India, the expenditure is way more above the 25 percent threshold.

Health Insurance - A Solution to Everything

It is very important to stay financially protected against the epidemic and the only way to stay financially protected against the treatment of the infection is by buying an adequate health insurance policy. Unlike all other medical expenses for hospitalization, if one gets hospitalized for treating coronavirus infection, the health insurance plan will come in rescue to safeguard medical expenses.

Buying a health insurance plan not just for yourself but for your entire family is important to make sure your hospital admission and treatment expenses are covered seamlessly. Your health insurance policy will cover you for testing and the cost of treatment for the novel coronavirus. However, while buying health insurance, it is important to have an adequate sum insured as the treatment of such pandemics is quite costly and one must have sufficient coverage to pay for the expenses.

Amit Chhabra is Head-Health Insurance, Policybazaar.com

First Published:Nov 10, 2020 2:33 PM IST