An opinion essay

The overlooked economics of preventive healthcare in India

Going beyond insurance protection

Dhaneesh Jameson

Published in

SugarBeets

5 min readFeb 23, 2024

The last few decades have seen significant strides in medical advancements, providing a broader range of treatment options and improving disease detection rates. These advancements have also driven up the baseline costs of treatments.

If one is earning a monthly salary of ₹2 lakhs (based on data from the All India Survey on Higher Education 2019–20), he or she is in the top 2% of India’s wealth ladder. According to rates fixed by the government, a private hospital can charge Rs 15,000–18,000 daily for a ventilator but in reality, the bill goes up to Rs 25,000 to Rs 100,000 per day depending on the city where you seek treatment.

This means securing adequate health insurance has become paramount for indian families superseding other financial priorities. However, what most people do not realise is the burden of rising out-of-pocket expenses (OOPE) which has dramatically increased compared to previous decades.

Health emergencies highlight the fact that insurance alone cannot fully mitigate the profound impacts on a family’s future caused by illness-related loss of life or disability after the treatment.

In nations like India, healthcare is often approached reactively, there is an urge to optimise the expenses by paying only for the services that one uses for sure. It’s surprising to see that even highly educated individuals structure their term insurance plans in ways that increase their likelihood of making claims. It suggests nothing but the shortcomings of the economic principles taught in our schools.

Simple health insurance was once viewed as a waste of money, but it is now seeing significant adoption, largely due to the marketing/ awareness efforts of insurance companies.

What most people underestimate is the fact that health emergencies can deprive individuals(patients and caregivers) of important life opportunities, or a significant reduction in the savings. The economics of healthcare reach far beyond treatment costs, and it is not often understood by many before the diseases.

The incidence of cancer is on the rise in India, with an estimated 1 in 9 people expected to develop cancer in their lifetime. Research indicates that cancer predominantly affects individuals aged 36–59. The Indian Heart Association reports that 50% of heart attacks in Indian men occur before the age of 50.

The insurance plans are part of a reactive healthcare system, costing us more because many don’t understand its true cost until a health crisis occurs in our own families.

7 Out of 10 Indians diagnosed with cancer will succumb to it under the current circumstances.

Heart disease takes the lives of almost three million people annually in India. Indian men experience heart disease a decade earlier than their Western counterparts, often without prior warning signs.

Heart disease has remained the leading cause of death at the global level for the last 20 years. However, it is now killing more people than ever before,” — WHO

In India, many individuals strive to launch their careers after completing their education, often securing entry-level positions in their 20s.

In their 30s, many embrace parenthood, while health concerns often become more prominent in their 40s and 50s. This phase is crucial, as individuals cannot afford to fall ill while managing the demands of advancing their careers, especially with ageing parents and young children, this stage becomes the most vulnerable period for their dependents.

Addressing these challenges requires strategies that extend beyond insurance coverage and financial assistance. Adopting a proactive approach is crucial to avoid potentially catastrophic consequences.

This is where people often underestimate the broader economic implications beyond insurance in their efforts to secure a prosperous future for their families.

There are silver linings.

The new developments in Upstream Medicine are shaping the future of healthcare for the better.

Upstream Medicine will bring a significant shift in healthcare practices, poised to transform future generations’ health landscape. This global trend towards preventive care acknowledges that early-life choices significantly impact later health, potentially reducing the need for treatment.

Non-communicable diseases now make up 7 of the world’s top 10 causes of death, an increase from 4 of the 10 leading causes in 2000. (from 2000 to 2019) — WHO

Preemptive screenings are on track to become standard practice, indicating a shift towards prioritizing prevention over treatment.

In the fields of cancer and heart diseases, our understanding has developed to recognise them as outcomes of genetic alterations that lead to life-threatening events under certain conditions. We are progressing towards improving disease prevention, early detection, and personalised treatments.

The economic advantages of preventive care are often unnoticed. Here are several key points worth considering:

Cost savings by avoiding costly procedures, hospital stays, and long-term treatments.
Increased productivity by reducing sick / caregiving days.
Insurance companies offer lower premiums to healthier individuals
Higher efficiency of the healthcare system through better use of resources and reduced burden of preventable illnesses.
Improved quality of life through better financial securities
Healthier aging by enabling individuals to stay active and independent thus reducing the need for expensive long-term care.

In summary, preventive care offers not only immediate health benefits but also long-term economic advantages that can positively impact individuals, families, and the healthcare systems.

Conclusion: Cherish life and live it fully.

Preventing life-limiting diseases is far more cost-effective than treating them after full development, especially since many health conditions can be irreversible, and the associated events may be unaffordable beyond just financial costs.

As science advances, we’re empowered not just with treatment options, but also with the ability to prevent diseases before they strike. It’s time to rethink our approach: prevention is not only economically wise but also essential in maximizing human potential.