A recent survey conducted by healthcare and insurance startup Loop has unveiled a concerning reality – approximately 73 per cent of employers are not incorporating mental health coverage in their employee health benefits packages. This revelation comes despite the Insurance Regulatory and Development Authority of India (IRDAI) making it mandatory to include mental health coverage in health insurance policies since November 2022. The survey, titled "Corporate India’s Insurance Trap: The Glaring Gap in Employee Health Benefits," involved over 500 human resources (HR) leaders from various industries across India, shedding light on the current state of health benefits for employees.
India, accounting for nearly 15 per cent of the global mental health burden according to the World Health Organization (WHO), faces a significant challenge. Workplace-related stress is identified as the biggest hindrance to mental health by 47 per cent of Indian professionals, with 33 per cent continuing to work despite this strain, as per a report by Peoplematters.
The survey findings further indicate that 35 per cent of participating HR leaders offer wellness services alongside group health insurance. Wellness initiatives are gaining traction as employers recognize the potential to enhance employee productivity and talent retention through wellness-centered engagement activities.
Currently, 38 per cent of Indian enterprises provide preventive care solutions within their health benefits plans. Notably, illness-related absences incur substantial costs, amounting to approximately $2 billion in revenue loss for companies, as highlighted by the Centre for Disease Control and Prevention. Preventive care inclusion in employee health benefits, as projected by ASSOCHAM, can save enterprises over $20 million annually by curbing absenteeism – a substantial financial gain.
The survey underscores the impact of lifestyle-related diseases on employees. Among individuals aged 26 to 40, 53 per cent are at risk of developing cardiovascular diseases. Hypertension and diabetes, common chronic ailments in India affecting 75 million and 67 million people respectively, are highlighted in the Health of the Nation Report 2022. Moreover, the report reveals that nearly 60 per cent of people discontinue treatment for chronic conditions due to high out-of-pocket expenses.
WHO predicts that an alarming 70 per cent of deaths in India by 2030 will be attributed to chronic diseases.
The survey also emphasizes the disparities in the perceived importance of insurance across different sectors. The IT and education sectors set higher benchmarks for employee insurance, typically offering coverage of Rs 5 lakh with a 1+5 family structure, maternity benefits up to Rs 50,000, and neonatal and postnatal coverage of Rs 5,000. Meanwhile, mid-market benchmarking reveals varying sums assured, ranging from Rs 3 lakh to Rs 5 lakh, and maternity benefits spanning from Rs 35,000 to Rs 50,000.
Another disconcerting finding revolves around hospitalization assistance. Merely 8 per cent of surveyed respondents offer hospitalization support to employees, encompassing lab discounts, outpatient visits, and annual health checkups. This underscores the necessity of evolving standard employer-funded health coverage to encompass hospitalization support services, encompassing advanced care hospitals, specialized clinics, and comprehensive checkup provisions.