India plans to bring an existing health insurance claims portal under the finance ministry and insurance regulator to curb overcharging by healthcare providers, a government source told Reuters.
Healthcare costs in India are projected to rise by 13% in 2025, exceeding the global average of 10%, and up from 12% recorded a year earlier, according to professional services firm Aon’s Global Medical Trend Rates Report.
An analysis by the government and the Insurance Regulatory and Development Authority of India (IRDAI) found that hospitals are inflating treatment costs for patients and overcharging those with higher covers, the source said earlier this week.
This has driven insurers to charge higher health premiums, making coverage less affordable for some, the source said, requesting anonymity as they are not authorised to speak to the media.
India’s finance and health ministries did not immediately respond to Reuters’ request for comment.
“Strict supervision” of the National Health Claims Exchange – the platform that acts as a gateway between insurers, healthcare providers and patients – will improve the “collective bargaining power” of insurance companies to set treatment rates, the source said.
Currently, the exchange is overseen by the health ministry’s National Health Authority and was developed in “consultation” with the insurance regulator, according to the authority’s website.
IRDAI does not regulate the health exchange but regulates insurers on the platform.
Annual growth in health insurance premium income has slowed to 9% in 2024-25 from over 20% a year ago, according to industry data, as premiums become unaffordable for many, leading to fewer policy renewals.
