India's Health Insurance Statistics By State - 2023

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Hunting for Health Insurance Statistics By State? You came to right place. We have covered some intriguing health insurance statistics. Read to know more

Hunting for Health Insurance Statistics By State? You came to right place. We have covered some intriguing health insurance statistics. Read to know more

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May 6, 2022
India's Health Insurance Statistics By State - 2023
India's Health Insurance Statistics By State - 2023
Health insurance has become one of the basic necessities of the population, in this day and age.

We know that any successful economy relies heavily on good national health; however, healthcare can become quite an expensive affair - something, not every middle-class Indian family can afford easily.

Without health insurance, the cost of hospitalization, out-patient treatments, medical tests, and other medical costs cumulate up to a massive amount, which people have to pay out of their own pockets.

It is also important to keep in mind that emergencies occur without prior notice, and money has to be provided at very short notice.

In India, the distribution of health insurance schemes is not even. Thus it is important to know the health insurance statistics by state. The reason we should be familiar with the health insurance stats of different states of India is so that we get clarity of this uneven distribution, and take action accordingly.

How Much Of India's Population Is Covered By Health Insurance?

India's population is 138 billion people. It is currently the world's second-most populous country, but it is predicted to overtake China's population soon and become the most populous country in the world.

In terms of medical technology, India has come a long way, but as a result of these developments, medical prices are rising as well.

Of these 138 billion people, around 30 percent of Indians do not have health insurance of any kind.

On paper, all Indian residents are entitled to free healthcare at government facilities since health care falls under the public sector.

However, the country's healthcare system is critically underfunded, both in terms of personnel as well as supplies. Thus, private providers are used by a large number of people.

In the fiscal year 2016, out-of-pocket payments accounted for about 64% of overall healthcare spending in the country.

The unfortunate thing is that because health insurance in India is still very low, thousands of people wind up spending a considerable portion of their income on healthcare, thus straining their financial circumstances.

To deal with these escalating costs, it is essential to have health insurance. Without health insurance, the medical expenses of an individual at a private facility in India can easily hit lakhs, and even crores, in a matter of a few months.

Around 514 million individuals in India were covered by health insurance plans in the fiscal year of 2021.

India's Health Insurance Statistics By State

Among this number of people with health insurance, the distribution is not evenly spread among all the states. According to reports from 2019-20, fewer than 40% of families in 11 Indian states are covered by health insurance products.

We know from the National Family Health Survey-5 (2019-20) data that in Jammu and Kashmir, there are only 12.7% of households, where at least one member is covered by general insurance, while in Bihar and Manipur, the percentages are 14.5 and 14.2 respectively.

1. In Maharashtra, there is 20 percent of households where at least one person has health insurance coverage, while in Nagaland, the percentage is 20.5.

2. Sikkim, Karnataka, and West Bengal are right next on the list, with 25.7 percent, 28.1 percent, and 29.3 percent of households respectively.

3. Tripura and Himachal Pradesh are at 33 percent and 34.5 percent respectively, while Gujrat ranks slightly higher, at 39 percent.

4. Mizoram and Kerala are at 46.4 percent and 51.5 percent respectively.

5. Assam, Telangana, Meghalaya, and Goa are all ranked right next to each other - 60 percent, 60.8 percent, 63.5 percent, and 66 percent respectively.

Among all the states whose data are listed in the survey, Andhra Pradesh ranks the highest, at a whopping 70.2 percent of the total number of households with at least one person having insurance coverage.

Employer-Sponsored Health Insurance Statistics

Employer-sponsored health insurance, also known as corporate healthcare insurance and group health insurance, is becoming increasingly common in India.

However, if health care statistics have an uneven distribution among the different parts, employer-sponsored health insurance statistics vary even more.

According to the Mercer Marsh Benefits (MMB) Health Trends report surveys, in 2022, the cost of employer-sponsored medical benefits in India is predicted to rise by 15%.

The MMB Health Trends report polls 210 insurers around the world, including 74 in Asia, to identify significant trends that will shape the future of employer-provided medical coverage.

In 2021, five Asian nations had higher medical trend rates than the regional average (8.8 percent), among whom, India has the greatest rate of medical inflation according to the survey, followed by China (12 percent).

A growth in employer-sponsored health insurance means a growth in the number of covered workers, thus providing them with safety, security, and mental peace, and increasing the number of people with health insurance in India.  

Did you know about the tax benefits of employer-sponsored health insurance? Find out here.

Why Is Health Insurance Currently The Most Valuable Service For Indians?

India is undeniably one of the world's fastest-growing economies, but it is also home to a slew of diseases. Health statistics say that living in such a fast-paced society is stressful, resulting in serious health problems.

Heart disease and diabetes, which are the major causes of death in India, claim the lives of millions of Indians.

In addition, respiratory illnesses, delivery difficulties, and infectious disorders are common. Many ailments are treatable in India thanks to advancements in medical research, but the cost of treating those diseases may cramp your budget.

Health insurance policies are thus an excellent approach to preparing for such circumstances.

According to health insurance statistics in India, taking loans or selling assets finance 31 percent and 47 percent of hospitalizations in urban and rural India, respectively.

Furthermore, according to the figures, 70 percent of Indians spend their entire income on healthcare, and 3.2 percent of Indians fall under the poverty line due to excessive medical costs.

This obviously demonstrates that the Indian market for the health insurance industry, be that of health insurance companies or life insurers remains yet unexplored.

Confused while choosing between group health plans and individual health plans? Click here to read more on Group Health Insurance vs Individual Health Insurance.

The Key Takeaway:

Both employees and employers benefit from employer-sponsored health insurance, and it sets the way for the improvement of overall health issues and medical security.

Download this quick and easy-to-read guide for implementing employee benefits that work for you and your organization

It makes it easier to address numerous issues at once: with employer-sponsored health insurance, you get all of the benefits of health insurance, but at a considerably lower price.

Loop Health offers the most affordable group health insurance plans, as well as free primary care and 24-hour customer assistance.

Our team of experts provides you with free complete care! Whether smaller issues are delaying your productivity goals or major issues are getting in the way of your life, you may always consult a professional of your choice at any time!

And here’s some good news! Loop Just Raised A $25M Series B Funding. Read more on it here.

India's Health Insurance Statistics By State - 2023
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