Dollar Crunch Hits Healthcare: Insurance Coverage for Popular Indian Hospital Suspended

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In a move that highlights the growing economic pressures in the country, the national health insurance provider Aasandha has suspended its coverage for Manipal Hospital in Bangalore, India. This decision, effective since Monday, comes amid allegations of inflated healthcare costs at the facility.

Heena Waleed, CEO of the National Social Protection Agency (NSPA), which oversees Aasandha policies, cited numerous complaints about Manipal Hospital charging patients far above the rates agreed upon with Aasandha. “We’ve received many reports of patients being billed at multiples of our fixed rates,” Waleed said in a statement.

The suspension affects new patients seeking treatment at Manipal, while those already undergoing follow-up care will continue to receive coverage. “Existing patients won’t be left in the lurch,” Waleed assured, “but we’re not approving any new cases for now.”

This development is particularly significant given that Manipal Hospital, along with Apollo Bannerghatta, is among the most sought-after facilities for Maldivian patients seeking specialized medical care abroad. Of the 57 foreign hospitals empaneled with Aasandha, 49 are in India, highlighting the Maldives’ heavy reliance on its neighbor for advanced healthcare services.

The Maldives, which spends about 7 percent of its national budget on Aasandha to provide universal health coverage for its population, is grappling with a dollar crunch. This financial strain is now spilling over into critical sectors like healthcare, potentially limiting options for Maldivians seeking treatment overseas.

As negotiations continue, it remains unclear whether Aasandha coverage for Manipal Hospital will be reinstated or if this marks a broader shift in the country’s approach to managing its healthcare costs abroad.

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