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Govt-owned insurers mull outsourcing health claims
The four government-owned non-life insurers — National Insurance, New India Assurance, Oriental Insurance and United India Insurance — will soon take forward their idea of floating a common third party administrator (TPA) to process health insurance claims.
The four government-owned non-life insurers — National Insurance, New India Assurance, Oriental Insurance and United India Insurance — will soon take forward their idea of floating a common third party administrator (TPA) to process health insurance claims.
“We will be issuing a Request for Proposal (RFP) shortly. Our requirements will be specified in the RFP so that interested parties can submit their proposals,” New India Assurance CMD M Ramadoss said.
Consulting firm KPMG had given a report on the feasibility of setting up a common TPA by the four companies a year ago.
The four insurers, which together do around Rs 6,000 crore of health insurance business selling several lakh polices, are not happy with the manner in which claims are processed and settled by the existing TPAs.
The earlier expectations of TPAs trying to bring down the treatment costs by hard negotiations with hospitals have not materialised. On the other hand, insurers complain about diversion of float funds provided to TPAs to other group ventures rather than for settling claims.
