Plum, a digital healthcare platform, released a report on November 21, 2023 stating that only 30 per cent of India's corporate employees choose any form of employer support for their healthcare expenses. Shockingly, less than 5 per cent of companies provide comprehensive healthcare options encompassing insurance, telehealth, and other health benefits. Further, almost 85 per cent of respondent employees with chronic illnesses felt unsupported by their employers.
Though employees were disappointed about coverage for chronic illness, 60 per cent felt the companies cared about their health. But only half of these employees opted for health care plans from their employers.
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The research by Plum took responses from 25 healthcare practitioners, over 700 employees, and analysed over 3500 employee healthcare plans and how employees use them.
Healthcare Support and Costs
The median sum insured by employers is Rs 3 lakh, falling significantly short (by 40 per cent) of the recommended Rs 5 lakh sum. Moreover, while 70 per cent of companies extend health insurance to employees' wife and children, only 25 per cent extended coverage to employees' parents. Only 15 per cent of India’s employees receive any kind of support from their employers, according to NITI Aayog.
At 14 per cent, India's medical inflation rate is highest in Asia which places a significant burden on employees with 71 per cent paying for healthcare expenses out of their own pockets. Average consultation fees for doctors in urban cities range from Rs. 300 for a General Physician, Rs 1,000 for a specialist to Rs. 2500 for mental health specialists. Managing chronic conditions escalates annual medicine spends, ranging from Rs. 12,000 to Rs. 48,000 per employee.
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A staggering 82 per cent of urban households lack health insurance coverage, leading to 55 per cent of hospitalisations being financed through household savings and an additional 23 per cent through borrowing.
Challenges in Corporate Healthcare Adoption
While companies invest in healthcare initiatives, the study reveals a mere 30 per cent employees opting for this. Jayanth Ganapathy, Head of Healthcare at Plum explains the reason, "Employees have apprehensions about employers accessing personal healthcare data. They trust in family doctors over company-sponsored healthcare. Continuity of care is disrupted due to changing vendors annually, impacting health outcomes measurement."
What Needs To Change?
Employees seek more personalised health benefits, with 42 per cent expressing interest in 'flex benefits' where they can choose their healthcare plans. Especially, younger employees tend to disregard employer-sponsored healthcare initiatives, and emphasise the need for personalized options.
Less than 5 per cent of companies provide comprehensive healthcare options encompassing insurance, telehealth, and other health benefits. As much as 85 per cent of employees with a chronic illness do not feel supported by their employers and suggest employers to include chronic illness in their healthcare plans.
