The vast majority of Indian insurance companies, specifically 31 of the 33 registered ones, have joined hands with 26 third-party administrators (TPAs) to standardize the prices for common surgical procedures.
The objective is to put an end to the large price gap in the private hospitals. The benefits's volatility penalizes small insurers who do not have the sufficient influence to negotiate with hospitals. For example, the price of the same surgery can range from 500 000 (5 710 USD) to 1.25 million rupees (14 278 USD).
The four State-owned insurers, New India, National Insurance, United India and Oriental Insurance, have already agreed on a standardized rack list that will soon come into effect. The supervisory authority intends to extend the model of public insurers to the private sector.