Insurance-driven health care threatens public health system, warns KSSP seminar

A seminar organized by the Kerala Society for Social Policy (KSSP) highlighted growing concerns that the increasing reliance on private health insurance is putting pressure on the state’s public health system. Speakers noted that while insurance schemes have expanded access to private hospitals, they also encourage a shift of patients away from government facilities, reducing the utilisation of publicly funded services. The panel argued that this trend could undermine the financial sustainability of Kerala’s network of primary health centres and district hospitals, which have historically delivered low‑cost, high‑quality care to a large segment of the population.

Participants called for a substantial rise in government health spending to strengthen infrastructure, upgrade equipment and retain skilled staff in public hospitals. They also urged tighter regulation of private insurers to prevent excessive premiums and to ensure that coverage policies do not incentivise unnecessary procedures that drive up overall costs. In addition, the experts recommended measures such as price caps on essential medicines and the expansion of cash‑less treatment schemes to lower out‑of‑pocket expenses for low‑income families, thereby protecting vulnerable groups from financial hardship.

The concerns raised at the seminar come at a time when Kerala is grappling with an ageing population and a rise in chronic diseases that increase demand for both preventive and curative services. Strengthening the public system is seen as essential to maintain equitable health outcomes and to avoid a two‑tier system where quality care becomes dependent on the ability to pay for private insurance. Policymakers are expected to review budget allocations and regulatory frameworks in the upcoming state health plan, with the aim of balancing private market growth and public service delivery.