**Narayana Health’s Viren Prasad Shetty Slams Traditional Health Insurance Model as “Inconvenient”**
The old model of health insurance, where hospitalization is viewed as an inconvenience by insurers, is on its way out, according to Viren Prasad Shetty, Director of Narayana Health. The hospital chain’s wholly owned subsidiary, Narayana Health Insurance, has instead adopted a ‘managed healthcare’ model which prioritizes prevention and early intervention.
When it comes to rising healthcare costs, Shetty points out that what’s often overlooked is the fact that people are using more healthcare services. This, coupled with the fact that hospitals and health insurers have traditionally been at odds, has led to a healthcare claim burden that’s driving up renewal premiums.
Narayana Health Insurance’s managed care model, which launched its maiden health insurance product two years ago, aims to change this narrative by placing a greater emphasis on preventive care. By doing so, the insurer hopes to reduce the financial burden of healthcare on policyholders. In essence, it’s a shift away from a ‘pay-as-you-go’ model where people are incentivized to seek medical care only when absolutely necessary.
**What this means**
For consumers, this could mean lower premiums and a more sustainable healthcare system. As Narayana Health Insurance continues to pioneer this approach, it’ll be interesting to see how other insurers respond. The managed care model might just be the wake-up call the traditional health insurance industry needs to rethink its priorities.
**A New Way Forward**
Narayana Health’s managed care model isn’t just about saving money; it’s about redefining the way we approach healthcare. By placing a greater emphasis on preventive care, insurers can help policyholders avoid costly medical procedures and hospitalizations. This approach also encourages collaboration between healthcare providers and insurers, which can lead to better outcomes and a more efficient healthcare system.
As the healthcare landscape continues to evolve, it’s clear that the old model of health insurance won’t cut it. By embracing a more proactive approach to healthcare, Narayana Health Insurance is leading the charge towards a more sustainable and patient-centric system.
