Haryana has been poorly ranked in the health index developed by Max New York Life Insurance and the National Council of Applied Economic Research (NCAER), for determining the level of financial preparedness against medical expenses or unforeseen medical emergencies. Meanwhile its neighbouring state Punjab performed far better, despite low average household income.
Haryana is ranked 19th out of the 23 states ranked on the index with a health index of 0.473. The state index is even lower than national index score of 0.547. As far as Punjab is concerned, it stands at number nine in the ranking, with a health index of 0.655. The survey also found that for an average household income of Rs 77,325, the annual health expense (routine+non-routine) in Punjab was Rs. 34,729, which is a considerable 44.9 per cent of the household income. Likewise, for an average household income of Rs 82,901 the annual health expense (routine+non-routine) in Haryana was Rs. 33,958, which is 40.9 per cent of the household income.
It is pertinent to mention here that Health Index is a function of the average household income, average household spend, average spend on health, and health insurance penetration.
The survey also highlighted that despite being ranked better than Haryana, both these states are not adequately prepared to deal with health expenses. The survey also points out that on an average, a household in Punjab spends 44.91 per cent of its income on heath expenses, while in Haryana, almost 40.9 per cent of the income is spent on health.
Also, in Punjab, people borrow 18.2 per cent of the total amount to overcome major sickness, whereas in Haryana, it is 43.6 per cent. The rest of the amount comes from saving and through other sources.
The total number of households that have health insurance is 1.59 per cent in Punjab. Further, only 5.43 per cent give importance to health insurance — a significantly low number. Similarly in Haryana, households that have health insurance is 0.58 per cent, and only 4.61 per cent give importance to health insurance.
Speaking to Business Standard, Max New York Life Insurance, Director & Head (Agency Distribution) Rajender Sud said, “With the growing incidence of diseases due to lifestyle changes, health insurance is recognised as one of the primary protection needs for all the members of the family. Financial preparedness to deal with health issues in India is low and health expenses continue to be a major source of stress for Indian households. A large section of households spend borrowed money to take care of their major medical expenditure. This can change if health insurance becomes an essential aspect of financial planning for individuals across the country.”