Healthcare costs in India have surged dramatically in the 2023-24 financial year, with an alarming increase in hospitalization expenses, according to a recent analysis by ACKO General Insurance.
The analysis, based on thousands of health insurance claims, sheds light on the rising healthcare inflation in the country, along with critical health risks that are increasingly affecting India’s population.
As healthcare inflation soars to 14 percent, the data reveals that Indians are paying significantly more for essential medical procedures, with common treatments such as angioplasty and kidney transplants seeing substantial price hikes.
With these growing costs, concerns about access to affordable healthcare have resurfaced as India grapples with the twin challenges of rising health risks and escalating medical expenses.
Healthcare Costs Surge as Inflation Hits 14 Percent
The latest figures from ACKO’s analysis of health insurance claims reveal a sharp 12.8 percent increase in hospitalization costs in the 2023-24 period. The average claim size jumped from ₹62,548 in the previous year to ₹70,558 in 2023-24, indicating a broader surge in healthcare expenses that is increasingly becoming a financial burden on households.
This spike in expenses is a direct reflection of the 14 percent healthcare inflation in India, which is exacerbating the already pressing issue of medical costs.
Notably, the report also highlights a disparity in healthcare claims between men and women, with women’s claims averaging ₹69,553 compared to ₹77,543 for men. It is important to mention that these figures exclude maternity claims.
The rising costs of medical treatments are making it difficult for many families to afford necessary healthcare, raising concerns about the country’s preparedness to provide accessible medical services to its growing population.
Escalation in Angioplasty and Kidney Transplant Costs
One of the most striking aspects of the analysis is the increasing cost of medical procedures, especially angioplasty and kidney transplants, which are critical for patients with heart and renal issues. Angioplasty, a common procedure used to open blocked arteries, has seen its cost escalate from ₹1-1.5 lakh in 2018 to ₹2-3 lakh in 2024.
Projections indicate that by 2030, the cost of angioplasty could skyrocket to ₹6-7 lakh, making it unaffordable for many middle-class Indians.
Similarly, kidney transplant expenses have more than doubled in recent years, rising from ₹5-8 lakh in 2018 to ₹10-15 lakh in 2024. ACKO’s analysis warns that these costs could surge further, potentially reaching ₹20 lakh by 2030.
With such steep increases, the burden on families with chronic health conditions is likely to intensify, necessitating better financial planning and increased insurance coverage to mitigate the impact of these growing expenses.
Cancer and Heart Disease Risks on the Rise
Alongside the rising costs of treatments, the analysis brings attention to the growing health risks, particularly cancer and heart disease, which are becoming increasingly prevalent among India’s middle-aged population.
According to the study, those aged between 41 and 50 are at a significantly higher risk of developing cancer. Hospitalization rates for treating neoplasms, which include both cancerous and non-cancerous tumors, are 2.8 times higher in this age group compared to those aged 31-40.
Alarming trends reveal that the average age for a breast cancer diagnosis in India is 52, much lower than the average of 63 in Western countries like the U.S. and Europe. Similarly, lung cancer is being diagnosed at an average age of 59 in India, compared to 70 in the West.
The risk of heart disease also increases significantly after the age of 40. ACKO’s data shows that those aged 41-50 account for 6.88 percent of heart-related claims, compared to only 2.24 percent for those aged 31-40.
Indians, as a population, are particularly vulnerable to coronary artery disease (CAD), with a 20-50 percent higher mortality rate from CAD compared to other nationalities. This is largely attributed to dietary habits, lifestyle factors, and genetic predisposition.
Alarmingly, heart disease is now the leading cause of death among women in India, accounting for 18 percent of female deaths, outpacing even breast cancer and other cancers.
Stark Differences in C-Section Deliveries Between Public and Private Hospitals
The analysis also delves into maternity claims, where a significant difference emerges in the rate of caesarean section (C-section) deliveries between private and public healthcare institutions.
In private hospitals, C-sections account for 69 percent of maternity claims, while in government-run hospitals, C-sections make up only 22 percent of deliveries. This stark contrast raises concerns about the potential overuse of C-sections in private facilities, driven by financial incentives or patient preferences, compared to more conservative approaches in government hospitals.
This trend not only underscores the disparity in healthcare practices between the private and public sectors but also raises questions about the quality of maternal healthcare being provided across different settings.
As healthcare costs rise, the variation in care between private and public institutions is becoming increasingly apparent, particularly in relation to surgical procedures like C-sections.
The findings from ACKO’s report highlight several critical issues in India’s healthcare system, ranging from skyrocketing costs to increasing health risks for the population.
With healthcare inflation reaching 14 percent and essential medical procedures becoming more expensive, the financial strain on Indian households is growing. The rising risk of cancer and heart disease, particularly in middle-aged individuals, adds another layer of concern.
As India continues to face these challenges, it becomes imperative for both the government and the private sector to work toward solutions that ensure affordable, accessible healthcare for all. Bridging the gap between private and public healthcare, improving preventive care, and expanding insurance coverage will be key to addressing the healthcare crisis that is emerging in the country.
