Hospitals agree to offer discounts to patients with health cover from Big 4

NEW DELHI: Corporate hospital chains have agreed to offer discounts to patients with health cover from the four state-owned general insurers, who refused to honour bills submitted by these chains from July onwards, alleging they were inflated.

If the proposal is accepted, patients with insurance from these companies will be put under a different billing structure within the same hospital. The discounts on cost of treatment will benefit insurers by reducing their payment to hospitals. As most consumers have a ceiling on their mediclaim, discounts will help stretch the money further.

The Big Four — New India Assurance, Oriental Insurance, United India Insurance and National Insurance Company, control more than half of the country’s health insurance market. Indians spend $35 billion every year on healthcare.

“We are ready to offer between 3-7% discount if they bring us business in bulk,” Prathap Reddy, chairman of the country’s largest hospital chain Apollo Hospitals told ET, on the sidelines of a health conference. The proposal is being discussed between top corporate hospitals, including Apollo Hospitals and Max Healthcare, and state-owned insurance firms, he added.

The chief executive of a general insurance company, on the condition of anonymity, said modalities of implementing the discounts are yet to be finalised.

Pervez Ahmed, CEO of Max Healthcare, said some hospitals, including Max Healthcare, Ganga Ram and Medanta, have separately submitted a revised rate list for 42 procedures to insurance companies.

Along with general and life insurance companies, who provide health insurance, there are three private exclusively health insurance firms — Apollo DKV, Star Allied Health Insurance and Max Bupa. Insurance companies bring bulk business for hospitals through their group insurance schemes.