Adverse Selection and Private Health Insurance Coverage in India

Financial barrier is still a dominant problem for access to necessary healthcare forrnmajority of the Indians. To ensure universal and comprehensive healthcare to itsrncitizens, alternative healthcare financing strategies like health insurance are beingrnwidely accepted. However, despite health insurance being an equitable and efficientrnsolution, the health insurance coverage still remains at an infant stage in our country.rnThis study specifically addresses the issue of low level of health insurance coveragernwith special reference to private health insurance. The study analyses the rationalrnbehaviour of insurance agents in the scale-up process of health insurance in anrnimperfect market. Moreover, the study discusses the impact of such rational behaviourrnof insurance agents on inequity in health insurance coverage and adverse selection.rnThis study will surely add to the existing body of literature on health insurance and hasrndirect policy relevance.