IRDAI forms panel to regulate hospital charges, curb rising treatment costs

The Insurance Regulatory and Development Authority of India (IRDAI) has set up a sub-committee to address concerns over high and inconsistent hospital billing, including charges levied by corporate healthcare providers.

The move is aimed at improving transparency in medical billing and reducing the financial burden on patients and health insurance policyholders. The panel has been tasked with examining ways to regulate hospital charges and recommending measures to standardise treatment costs across institutions.

Officials said the committee will also review health insurance premiums, with a focus on ensuring greater stability and preventing sharp annual increases. The initiative comes amid growing complaints that hospitals often charge widely varying rates for the same procedures, leading to confusion and higher out-of-pocket expenses for patients.

The proposed framework is expected to introduce clearer pricing structures, helping both patients and insurers better understand treatment costs. It may also reduce disputes over insurance claims and minimise instances of claim rejections or deductions.

Another key area under consideration is the expansion of cashless treatment facilities, allowing patients to receive medical care without making upfront payments.

Experts believe that if implemented effectively, the recommendations could bring much-needed uniformity to healthcare pricing and offer relief to millions of insured individuals across the country.

The sub-committee is expected to submit its recommendations in the coming months.