Bengaluru: Dr. Devi Shetty’S Narayana Health has become the first hospital chain in India to also have a hospital Insurance companyThus, one of the three entities that form part of the insurance ecosystem has been removed. The flagship hospital insurance product, called AditiOffers comprehensive family coverage at an annual premium of Rs 10,000, covering Rs 1 crore sum insured for surgeries and Rs 5 lakh in treatment costs at Narayana Health Network hospitals.

Health insurance typically involves an insurance company, a hospital and a patient. Dr Shetty says that by combining the hospital and the insurance company, they are eliminating the need for two entities to ensure profits, making insurance more affordable. Since the claim settlement process will take place within the Narayana Health network, it is also expected to be hassle-free, allowing patients to focus on their health and recovery.

Aditi will be initially launched in four districts around Mysuru as a pilot project, followed by other parts of Karnataka. “Narayan Aditi is designed to save families from the financial burden of medical expenses, providing peace of mind during challenging times. With the launch of Aditi, we have embarked on a transformational journey to make quality healthcare a reality for every Indian,” Dr Shetty said in Bengaluru on Monday.

He said the primary goal is to promote preventive health checkups. “All tests will be available at subsidised rates at Narayana Health for those insured under this scheme. For instance, if a person is suffering from diabetes, our 24-hour helpline will track the person’s health records and if he has not checked his blood sugar levels, we will ask him to get it done. And, as the scheme progresses, we may even visit their homes to collect samples,” he said.

Dr Shetty said developing countries have made a mistake by prioritising malaria, tuberculosis and HIV in their government health policies. He said these diseases cause 1.2 million to 2 million deaths each year, but lack of access to safe surgery causes 17 million deaths worldwide. “If our government considered offering surgery to everyone as a national strategy, there would be a magical change in the way public healthcare is delivered,” he said.

He said insurance is the only way out for big countries like India. He said free healthcare has worked in some smaller countries with a population of not more than 5 to 10 million. He said these countries also have a tax-to-GDP ratio as high as 25% to 45%, and they spend 18-20% of their GDP on healthcare. He said India has a tax-to-GDP ratio of only around 11%, and less than 2% is spent on healthcare. For these reasons, the way to ensure healthcare for all is to find ways to provide affordable insurance, he said. On the hospital chain’s expansion plans, Dr Shetty said a greenfield hospital in Kolkata is in the works. The first phase of the project, which will have 350 beds, will cost Rs 500 crore