Health savings account

Health savings account

Building a robust health savings account scheme to provide a corpus for meeting healthcare needs and increasing health insurance penetration in India.


Health insurance in India has been largely focused on catering to the institutional or in patient healthcare expenses. The out of pocket expenses are widely skewed towards non-institutional healthcare expenditure leaving a gap between healthcare financing needs of individuals and what is currently available through health insurance. The paper discusses the suitability of a holistic healthcare coverage plan utilizing a health savings account program. The report analyses health savings plans in the US, Singapore and South Africa to understand the feasibility of a similar product construct in the Indian context. The report suggests the structure and characteristics of a health savings account oriented product for India. Furthermore, the report outlines key suggestions for different stakeholders to develop an ecosystem for meeting overall healthcare demands and reducing out of pocket healthcare expenditure through introduction of a health savings account plan.

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