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Health Insurance Premiums Rise Despite GST Removal: Check One-Year Stats
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CNBC Awaaz•07-10-2026, 14:16
Health Insurance Premiums Rise Despite GST Removal: Check One-Year Stats
- •It has been over a year since the 18 percent GST on retail health insurance premiums was abolished effective September 22, 2025, to make coverage more affordable.
- •Despite the GST removal, some customers have witnessed premium increases of up to 35 percent over the past 12 months due to rising healthcare service costs.
- •Insurance experts note that continuously rising costs of modern medical equipment, specialist doctors, and hospital expenses directly impact treatment costs and premiums.
- •Industry leaders explain that medical inflation runs around 13 percent, requiring periodic premium reviews to account for escalating medical expenses.
- •Many policyholders are utilizing the savings from the GST exemption to opt for higher sums insured and secure more comprehensive health coverage.
Key Questions Answered
The 18 percent GST on retail health insurance policies was officially abolished and made effective starting September 22, 2025.
Renewal premiums continue to rise because of the continuously rising cost of healthcare services, medical inflation, and regular periodic adjustments made by insurers.
Many policyholders are using the financial savings from the GST removal to opt for higher sums insured and add extra coverage features to their plans.
