Fixing senior citizen health insurance pricing beyond the premium caps

livemint.com:

The Insurance Regulatory and Development Authority of India (Irdai) has capped annual health insurance premium hikes for senior citizens at 10%, offering much-needed relief to an age group often hit hardest by unpredictable price surges. 

While the move promises stability, it also raises a crucial question: Will insurers find new ways to offset costs, tightening underwriting and claim scrutiny? 

There are some areas where additional refinements could enhance consumer protection and clarity.

The 10% cap offers much-needed relief by preventing the sudden, steep premium hikes that have long troubled senior citizens. These increases often stemmed from age-related adjustments, price revisions, or both. 

While the cap ensures more predictable costs, concerns linger that insurers might treat it as a benchmark, opting for annual price revisions instead. 

A balanced approach, driven by ongoing dialogue between the regulator and insurers, is crucial to maintain affordability without compromising the sustainability of health insurance offerings.

The provision that prevents insurers from withdrawing products without seeking Irdai’s approval is a thoughtful safeguard.

It signals the regulator’s commitment to protecting consumer interests and preventing abrupt changes that could disadvantage senior citizens. This guideline should ideally be coupled with a uniform approval process that promotes prudent decision making. 

Also read: Govt’s free health insurance scheme welcomes senior citizens. But can they rely on it?

A more transparent process, perhaps including a publicly accessible summary of pricing decisions and their justifications, could help build confidence among policyholders.

While the 10% cap offers much-needed relief, it