PMO Pushes for Better Health Insurance Services

According to sources, a high-level meeting between PMO and DFS officials on May 20 reviewed the rising concerns around health insurance affordability and access.

Updated May 26, 2025 20:18 IST

The PMO has instructed insurers to avoid arbitrary deductions and focus on improving the reach and quality of cashless services across the country.

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In a significant move aimed at strengthening India’s health insurance ecosystem, the Prime Minister’s Office ( PMO ) has directed the Department of Financial Services (DFS) to ensure better service quality, faster cashless claim settlements, and greater transparency in premium pricing. According to sources, a high-level meeting between PMO and DFS officials on May 20 reviewed the rising concerns around health insurance affordability and access.

The PMO has instructed insurers to avoid arbitrary deductions and focus on improving the reach and quality of cashless services across the country. It has also called for widening the health insurance pool to manage rising claims, especially in the wake of growing post-COVID morbidities and increasing frauds. A senior official remarked, “Premiums are rising due to multiple factors, not just affordability. There’s a pressing need for systemic corrections.”

Sources also revealed that in January, during his Gujarat visit, Prime Minister Narendra Modi was informed by a long-time acquaintance about a 40% spike in his parents’ health insurance premium. The feedback, particularly about the burden on senior citizens, prompted the PMO to act swiftly. Subsequently, IRDAI issued a new regulation capping premium hikes for policyholders aged 60 and above at 10% per annum without prior regulatory approval — a decision that surprised many in the insurance industry.

Furthermore, the government is mulling the creation of a dedicated hospital regulator. A proposal to this effect has already been submitted to the PMO, which sees it as crucial for ensuring long-term systemic improvements and protecting consumer interests.

“Efforts are underway to boost health insurance penetration and awareness, especially among the youth. Improving the quality and reach of cashless services is equally important. Better service shouldn’t come at the cost of reduced coverage—only justified deductions must be accepted, and arbitrary cuts need to stop,” a senior government official told ET Now on condition of anonymity

Officials emphasized that youngsters must be encouraged to opt for health insurance early, while also ensuring that senior citizens are not priced out of essential health coverage.

PMO

Health Insurance

insurance

Department of Financial Services

IRDAI

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PMO Pushes for Better Health Insurance Services

According to sources, a high-level meeting between PMO and DFS officials on May 20 reviewed the rising concerns around health insurance affordability and access.

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