Health care managed by insurance threatens the public health system, KSSP seminar warns

Eminent health economist V. Ramankutty inaugurates state-level health seminar organized by Kerala Sasthra Sahithya Parishad (KSSP) in Thrissur on Saturday | Photo credit: SPL

The growing influence of insurance companies and private hospital management in the healthcare sector is contributing to the exploitation of patients and weakening the public healthcare system, said eminent healthcare economist V. Ramankutty.

Inaugurating a state-level health seminar organized by the Kerala Sasthra Sahithya Parishad (KSSP) in Thrissur on Saturday, he alleged that the unholy nexus between insurance companies and hospital management was aggravating the problems faced by patients. The growing penetration of insurance into the healthcare sector could also lead to a reduction in government budget allocations and a gradual withdrawal of the state from public healthcare, he warned.

Driven primarily by profit, insurance companies have failed to provide adequate services and coverage for patients, he said. A large section of beneficiaries were dissatisfied with the insurance schemes, including MEDISEP, which covers Kerala government employees and pensioners.

Stronger regulation

He called for stronger regulation of corporate players in healthcare and increased government spending on public health. The government could mobilize additional revenue by introducing health and sin taxes, which could then be used to boost public health services, he suggested. People’s health activist KG Radhakrishnan presided over the seminar.

While presenting on the topic, speakers warned that MNCs acquiring small and large private hospitals in Kerala could increase the cost of treatment. Government-sponsored insurance programs would not provide a permanent solution to this trend, he said.

Instead, governments should strengthen the public health system and strive to eliminate out-of-pocket expenses for treatment, they said, stressing the need to make quality health care available without financial burden for patients and their families.

Published – 24 Oct 2026 20:01 IST