Indian government is now planning to create a new health insurance rule and to make healthcare area more affordable to the general public of our country. The government wants to increase health insurance transparency and help to control the rising cost of medical treatment.
A panel comprising regulators, insurance companies, hospitals, and industry groups is working on the changes. It is expected to give its recommendations by the end of 2026.
The goal is to create standard prices for common medical treatments. If Hospitals and insurers agree on these rates, then it might help to reduce billing.
The new rules could also help to reduce unnecessary and false insurance claims. Industry estimates suggest that around 10% to 15% of health insurance claims may be invalid. The move could help insurers reduce such claims and make the overall process simpler and fairer.
The government is also considering a common health-insurance plan. All insurance companies may have to offer this plan along with their existing policies. This common plan covers a fixed list of illnesses and treatments. People would then have a clearer idea of what their policies cover.
India also wants hospitals and insurers to use the National Health Claims Exchange in future. The platform can help hospitals and insurers to share billing and claim details in the same format. This can help them to check claims faster and settle payments easily.
India has more than 40 health insurers. The industry collected approximately ₹1.17 trillion in health insurance premiums in the financial year that ended in March 2025.
At the same time, medical costs in India is rising. Industry estimates put medical inflation at around 12% to 14% each year. The government wants more people to buy health insurance and avoid the financial pressure that can accompany expensive medical treatment.
Once these reforms are introduced, health insurance could become easier to understand, more transparent, and help people to manage their healthcare costs better.
