Insight into Health Insurance Sector of India: Based on longitudinal pilot data

Healthcare expenditure of Indian government is 1.2% of GDP which leaves a question mark on universal health coverage. India has one of the highest inefficient and iniquitous out of pocket expenditure in Asia. Health insurance is, thus, widely recognized and preferable mechanism to finance the health care expenditures. The present study attempts to recognize uninsured population and reasons for low health insurance cover. The study has used Longitudinal Ageing Study in India pilot data conducted by International Institute for Population Sciences, Harvard School of Public Health, and RAND Corporation in 2010. The study has used bivaraite and multivariate analysis on a sample of 1585 population which reflected embryonic stage of health insurance. People are not much aware about it and those who are aware are not actively participating due to affordability or accessibility issues. Sixty percent of study population considers financial issues important for purchasing health cover and thus a large section of the population is indirectly left out. The study emphasizes the need of increasing the awareness about health insurance to boost its demand. India has one of the highest domestic saving rates which if channelized into productive financial instrument can prevent the burden of catastrophic health expenditure.