India is set to implement a strategic move to address the issue of inflated hospital bills by bringing an existing health insurance claims portal under the jurisdiction of the finance ministry and the Insurance Regulatory and Development Authority of India (IRDAI). This initiative aims to curb overcharging by healthcare providers, as revealed by a government source to Reuters. The decision comes in response to findings that hospitals have been inflating treatment costs, particularly for patients with higher insurance coverage, leading to increased health premiums and reduced affordability of insurance for many citizens.

According to Aon’s Global Medical Trend Rates Report, healthcare costs in India are expected to rise by 13 percent in 2025, surpassing the global average increase of 10 percent. This marks a significant jump from the 12 percent increase recorded in the previous year. The government’s analysis, in collaboration with IRDAI, highlights that inflated treatment costs have driven insurers to raise health premiums, making it challenging for individuals to maintain their insurance policies. As a result, annual growth in health insurance premium income has slowed to 9 percent in 2024-25 from over 20 percent the previous year.

The National Health Claims Exchange, which serves as a crucial platform connecting insurers, healthcare providers, and patients, is currently overseen by the health ministry’s National Health Authority. The exchange was developed in consultation with the insurance regulator but is not directly regulated by IRDAI. By shifting oversight to include the finance ministry and IRDAI, the government aims to enhance the collective bargaining power of insurance companies, enabling them to negotiate more favorable treatment rates.

This move is expected to bring about stricter supervision and regulation of healthcare costs, ultimately benefiting consumers by making health insurance more affordable and accessible. Despite requests for comments from India’s finance and health ministries, no immediate responses were provided. The government’s proactive approach underscores its commitment to addressing healthcare affordability and ensuring fair pricing practices within the industry.