Centre Pushes Insurers, Hospitals to Curb Medical Inflation and Premium Rise

The meeting brought together key representatives from the insurance and healthcare sectors to deliberate on systemic reforms needed to make healthcare more affordable, transparent, and patient-centric.

In a crucial move to tackle the growing concern of medical inflation and rising health insurance premiums in India, the Department of Financial Services (DFS) convened a high-level meeting on 13 November 2025, chaired by Shri M. Nagaraju, Secretary, DFS. The meeting brought together key representatives from the insurance and healthcare sectors to deliberate on systemic reforms needed to make healthcare more affordable, transparent, and patient-centric.

Medical inflation in India has remained significantly higher than general inflation, driven by increasing treatment costs, advanced diagnostic procedures, higher hospitalization expenses, and rising demand for quality medical services. Health insurance premiums have closely followed this trend, placing a financial burden on millions of policyholders. The meeting aimed to strengthen collaboration between insurers and healthcare providers to ensure cost efficiency without compromising patient care.

Broad Representation From Healthcare and Insurance Ecosystems

The meeting witnessed participation from a diverse set of stakeholders, reinforcing the government’s intention to bring all major players to the table. Attendees included:

• General Insurance Council and Association of Healthcare Providers of India (AHPI)

• Senior representatives from leading hospital chains such as Max Healthcare, Fortis Healthcare, and Apollo Hospitals

• Industry leaders from insurance companies including New India Assurance, Star Health Insurance, Bajaj Allianz General Insurance, Niva Bupa, and Oriental Insurance

Prominent participants included Shri Inderjeet Singh, Secretary General, General Insurance Council; Dr. Suneeta Reddy, MD, Apollo Hospitals; Shri Shivakumar Pattabhiraman, MD, Indraprastha Apollo Hospitals; Shri Abhay Soi, CMD, Max Healthcare; Dr. Girdhar J. Gyani, Director General, AHPI; Shri Krishnan Ramachandran, CEO, Niva Bupa; Shri Amitabh Jain, ED & COO, Star Health Insurance; and Smt. Meera Parthasarathy, General Manager, Oriental Insurance Company.

Focus on Standardized Procedures and Transparent Operations

Addressing the gathering, Secretary Nagaraju emphasized the need for comprehensive reforms to improve efficiency and accessibility in the health insurance ecosystem. Among the measures suggested were:

• Faster onboarding of insurers and hospitals onto the National Health Claims Exchange (NHCX) This digital platform aims to streamline claims processing and reduce delays for policyholders.

• Development of standardized treatment protocols Ensuring uniformity in medical procedures can significantly reduce cost discrepancies across hospitals and regions.

• Common hospital empanelment norms across insurers Standardization in empanelment would ensure consistent cashless access for policyholders, simplify contractual requirements, and reduce administrative workload for hospitals.

• Improved turnaround time for approvals and claims The Secretary stressed the importance of efficient claim processing and timely pre-authorization, especially during hospitalization, to enhance patient experience.

Strengthening Cashless Access and Reducing Red Tape

One of the key points highlighted was the importance of seamless cashless transactions. With rising out-of-pocket expenditure hindering healthcare accessibility for many families, ensuring that insured individuals can rely on hassle-free cashless hospitalization is a top priority. Standardized empanelment norms would help create uniformity in service terms and help hospitals better coordinate with multiple insurance companies.

Secretary Nagaraju reiterated that policyholders must receive the highest quality of service, including faster approvals, transparent communication, and reduced claim settlement timelines.

Addressing Medical Inflation Through Collaboration and Cost Control

Medical inflation is influenced by several interconnected factors—ranging from rising material and equipment costs to increasing manpower expenses and adoption of cutting-edge technology. The Secretary pointed out that while these cost pressures are complex, collaboration between insurers and healthcare providers is key to controlling and managing them effectively.

Greater transparency in pricing, the adoption of standardized cost structures, and enhanced data-driven monitoring were identified as essential steps for improving efficiency and providing better value to health insurance customers.

Path Toward a More Affordable and Accessible Healthcare System

The discussions underscored the government’s commitment to safeguarding consumer interest while fostering a sustainable environment for both insurers and healthcare providers. By encouraging digital integration, standardization, and accountability, the DFS aims to create a more streamlined, patient-friendly health insurance ecosystem capable of meeting India’s growing healthcare needs.

The meeting concluded with consensus among participants to continue collective dialogues and work towards practical, long-term solutions to the challenges posed by medical inflation and rising premiums.