You may be aware that healthcare costs in India are rising at an alarming rate. According to the ACKO India Health Insurance Index 2024, healthcare costs have been increasing by 14% annually due to healthcare inflation.

This means more people are finding themselves struggling to afford medical expenses, with 23% of hospital charges being financed through borrowings. Even worse, 62% of healthcare costs in India are paid out of pocket, placing immense strain on families, reveals the report.

The rising cost of healthcare is no longer a distant worry—it’s a reality that affects every Indian household.

But, what can you do about it? How can you keep healthcare costs under control without compromising on quality? Here are five practical steps by Karepedia to help you manage your healthcare expenses.

Invest in Comprehensive Health Insurance

The best way to protect yourself and your family from the financial burden of healthcare is to invest in a comprehensive health insurance plan.

With rising medical costs, relying on your savings is no longer a safe option. Health insurance ensures you’re covered for hospital stays, surgeries, and even critical illnesses like kidney disease and heart problems, which are becoming increasingly common in India.

For example, the ACKO report showed Delhi has become the "capital for kidney disease," and kidney-related medical expenses can be astronomical, with claims as high as ₹24.7 lakh. Imagine the strain on your finances if you didn’t have insurance to cover such costs!

Utilise Government Healthcare Schemes

India offers several government-backed healthcare schemes aimed at reducing the burden of medical expenses. The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) is one such initiative. Recently, the scheme extended health coverage to all senior citizens aged 70 and above, regardless of income.

This scheme provides up to ₹5 lakh per family for secondary and tertiary healthcare. If you’re eligible, take full advantage of it. Government schemes like AB PM-JAY can significantly lower out-of-pocket expenses and ensure quality healthcare for the most vulnerable.

Go for Preventive Healthcare

Prevention is always better than cure—and cheaper, too. Regular health check-ups can help catch diseases early, potentially saving you from costly treatments down the road. Many hospitals and healthcare providers offer preventive healthcare packages at affordable rates, allowing you to monitor your health proactively.

This is particularly important considering the rising number of claims for chronic diseases like heart conditions and cancer, as highlighted in the ACKO Index. By catching diseases early, you reduce the likelihood of hospitalizations and expensive treatments later on.

Compare Hospital Costs

Not all hospitals charge the same for the same treatments. It’s important to compare costs before making a decision. For instance, private hospitals in metropolitan areas like Delhi or Mumbai may charge significantly more than hospitals in smaller cities for the same procedure.

Researching and choosing hospitals that offer cost-effective treatments without compromising on quality can help you save a lot of money. Websites and insurance platforms often provide comparisons of treatment costs across hospitals, so make sure to explore your options.

Plan for Emergency Medical Funds

While insurance will cover most of your expenses, having an emergency medical fund is a wise move. This fund can cover immediate out-of-pocket expenses that insurance might not. For example, if you’re dealing with an unforeseen emergency like a sudden heart attack or kidney failure, you’ll need quick access to funds while waiting for your insurance claim to be processed.

Building a small emergency medical fund can offer peace of mind and ensure that you’re not caught off guard by immediate expenses.

Why Is This Important?

With healthcare inflation hitting 14% annually, managing healthcare expenses is becoming a necessity, not a luxury. The ACKO Index highlights how vulnerable we are, with kidney disease, heart conditions, and cancer cases increasing steadily across India. Without adequate planning, these rising costs could cripple even the most financially stable families.

The key takeaway is that healthcare expenses don’t have to be overwhelming. By taking the right steps—such as investing in comprehensive insurance, utilising government schemes, and prioritising preventive healthcare—you can keep these costs under control.

Let’s face it, health is wealth—and managing your healthcare expenses smartly is crucial to protecting both.

Stay tuned for more healthcare tips and updates with Karepedia, your trusted guide in India’s healthcare landscape.