Health Insurance, Cashless 'Juggernaut'!
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Though the health insurance industry was growing, insurers complained that they were constrained by losses owing to factors like higher administration expenses, adverse claims ratio, high hospital charges and improper risk assessment. To contain the losses, apart from other corrective measures, insurance companies proposed deduction and standardization of hospital charges. When most of the network hospitals refused the proposal, insurers went ahead and announced delisting those hospitals which rejected proposal and scrapping cashless hospitalization facility. This raised alarm in customer and industry groups attracting action from all bodies involved for an amicable solution.
» Health insurance concepts and health insurance industry growth in India.
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