The Hindu Business Line : Healthcare body seeks lower capital adequacy for medical insurers

DOMESTIC healthcare industry wants the Government to reduce the stipulated capital requirement for health insurers from the current level of Rs 100 crore to Rs 30 crore.

Ms Suneeta Reddy, Vice-President of Indian Health Care Federation (IHCF) and co-chairperson of the CII national committee on healthcare, told Business Line here recently that this it is one of the main recommendations of the apex industry body, to be submitted shortly to the UPA Government.

The IHCF, the apex body for the industry, in association with the CII, has undertaken a joint exercise for outlining a long-term healthcare roadmap for the country.

According to Ms Reddy, the industry is suggesting a mandatory health insurance cover for all and removal of barriers to usher in greater FDI flow into the sector.

Among key industry recommendations regarding extension of a sustainable healthcare insurance business in the country are: a) introduction of a risk-based capital monitoring and product-level norms to ensure that the insurers carry adequate capital; b) inclusion of low income group customers; and c) splitting payer and provider roles. The industry is also calling for national guidelines for community insurance keeping the premia at a low level.

Dr N.K. Pandey, Secretary of IHCF and Executive Director of Escorts Hospital and Research Centre, said that the industry body was working towards putting in place a clinical benchmarking, accreditation and ethical standards for healthcare delivery units.

"A draft document for creation of a national accreditation body for healthcare outfits has suggested a three tier certification levels. IHCF is also preparing guidelines and criteria for minimum standards for benchmarking healthcare services provided by the hospitals and nursing homes," Dr Pandey added.

"Two years ago Crisil had started an accreditation and certification system for some hospitals. However, it did not become very popular among our members," Dr Pandey observed.

The 150-member strong body is trying to find an appropriate Indian model for accreditation in consultation with Joint Commission Internationale, the apex global body.

IHCF is also formulating a uniform price band for its member hospitals.

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