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Discounted outpatient services: a way to keep clients

Emerging Insight #:


Date of Release:

  January 20, 2012


  Renewals, Improving value, Value-added services, Health


  Swayam Shikshan Prayog (SSP), India

SSP finds use of outpatient services by clients to be associated with increased renewals. As an added benefit of its cashless inpatient health insurance product, SSP offers clients a discount of approximately 50 per cent on consultation fees from a network of local physicians and a 40 to 70 per cent discount on the retail price of drugs.

SSP observed that clients who had accessed discounted outpatient services were three times more likely to renew their membership. Clients who did not use either outpatient or inpatient services had a 15 per cent renewal rate compared to a 45 per cent renewal rate for those who used outpatient services, and a 69 per cent renewal for those who used both outpatient and inpatient services.

The attraction of discounted outpatient services make sense when considering that at least 40 per cent of SSP’s claims were for common waterborne illness (diarrhea and typhoid),which can often be prevented or treated without hospitalisation. In areas where such illnesses are prevalent, providing and incentivising access to outpatient clinics (along with prevention mechanisms) can make economic sense and provide better value to clients. Clients can be treated faster and avoid or reduce the adverse consequences of being ill, both economic (e.g. lost wages, out of pocket costs) and health related (e.g. temporary or permanent disability, death).

For more on SSP, see their Learning Journey. The Learning Journey is a narrative account of the lessons being learned by the Facility's innovation partner as it implements its microinsurance project.