Narayana Health in Talks with IRDAI to Sell Bundled Health Insurance Package
India’s leading hospital chain, Narayana Health, is in discussions with the Insurance Regulatory and Development Authority of India (IRDAI) to sell a bundled health insurance package. The package proposes to offer comprehensive care from outpatient consultations to ordering medicines, health check-ups, diet, physiotherapy, and surgeries. The insurance business won’t be capital intensive and would be targeting the “missing middle” – the 40% of Indians who are left out of government health insurance schemes like Ayushman Bharat or can’t afford healthcare like the 10% affluent segment.
Narayana Health’s Insurance Foray
For its insurance foray, Narayana Health incorporated a wholly owned subsidiary called Narayana Health Integrated Care (NHIC) and has undertaken a slump sale to transfer its existing clinic assets. It has set aside ₹50 crore for the new venture, which is currently being rolled out on a pilot phase in Bengaluru. The company has roped in Ravi Vishwanath, a seasoned insurance industry executive, to build the insurance business. Based on the progress of the pilot in Bengaluru, they would add more clinics and expand services to the rest of Karnataka and Kolkata.
Managed Care Model
Narayana Health’s approach would be based on a managed care model where the company proposes to pay one flat amount to healthcare providers every month. The clinics will provide a key role by providing primary and preventive care. Narayana Health aims to provide a comprehensive healthcare solution that keeps a person healthy, rather than just paying for their surgery.
Other Hospital Chains in Health Insurance
Narayana Health isn’t the first hospital chain to get into health insurance. However, the existing health insurance system operates on a fee-for-service model and is not designed to keep a person healthy. It is just a credit card that pays for surgery. Narayana Health’s approach is different and aims to provide a comprehensive healthcare solution that keeps a person healthy.
Narayana Health’s foray into health insurance is a step towards providing comprehensive healthcare solutions to the missing middle. The company’s managed care model aims to keep a person healthy, rather than just paying for their surgery. With the pilot phase underway in Bengaluru, Narayana Health plans to expand its services to the rest of Karnataka and Kolkata.