In Next 5 Yrs, Qube Will Deploy Over $2 Bn In Healthcare Credit: Chris George

How does Embedded Finance work in the Healthcare sector and what are its growth prospects?

Embedded finance as a concept has been around for a while also commonly known as ‘Buy Now Pay Later’. The concept of embedded finance has been adopted by the retail and other fintech sectors and is now being widely used and accepted. 

In the healthcare sector embedded finance connects the lenders to healthcare providers, by issuing a pre-approved health care limit which is built into a seamless payment method.  

Embedded finance in the healthcare sector helps decrease the payment friction for healthcare treatments that a patient is seeking, by putting the power in the hands of the payer (the patient). 

The foundation on which the payment service is built on, plays a crucial role in determining the experience a patient would have while using embedded finance for health care purposes. In India there are close to 5 million point of sale terminals and 748 million smart phone users ensuring users have a more or a less smooth transaction experience due to the digital India movement.  

Challenges are also driven due to various regulations introduced by the government and the ability of companies to fairly distribute the offering. 

What are some measures that can reduce reduce the number of OoPE in India?

OoPE expenditure in India has been witnessing an increase. According to reports published by NITI Aayog for March 2021, listing this at $72 Billion – the amount that Indians paid from their pockets on healthcare.  

Increase of government spending on healthcare (high quality public hospitals & clinics) is the first step towards reducing OoPE, as well as regulation that supports healthcare financing by providing subsidies and benefits to the lenders and facilitators to lend to this sector. Expansion of insurance coverage is another way to reduce OoPE. 

What is  the Impact of OoPE on Indian patients, and will it continue to grow over the coming years?

Out-of-pocket health expenses drove 55 million Indians–more than the population of South Korea, Spain or Kenya–into poverty. Over 60 per cent of Indian’s incur OoPE from which medication is the largest contributor.  

The number of Indian’s spending on OoPE for health care has only increased post the pandemic. Unofficial reports estimate that OoPE is expected to cross $100 Billion within the next 5 years, especially as the statistic post the pandemic are still being collated. 

The number of InsureTech companies in the country are growing to meet and match the demands. However, insure-tech companies cover just 30 per cent of the Indian Healthcare Services and for their impact to be felt they still have a far way ahead.  

The 2021 Economic Survey clearly stated the importance of increasing public health spending to 3 per cent of the GDP (we need it to go to 5 per cent) could significantly reduce Out-of-Pocket Expenses (OoPE) in healthcare from 63 per cent currently to about 30 per cent. Now, we spend 0.68 per cent of GDP as per the Union Budget for 2021–2022. 

How have payments changed in healthcare sector post pandemic?

There has been little impact of ‘payment systems’ in the healthcare sector post the pandemic. Indians still pay for healthcare expenses like they did before – Credit Cards, Debit Cards, Cash, Gold and to a lesser extent through health insurance coverage. 

To improve the healthcare infrastructure the government in 2018 in the Union budget addressed this through the National Health Protection Scheme (NHPS), to provide a cover of INR 5 lakh to over 10 crore families. A detailed implementation plan for the same is still awaited from the government.  

How is QubeHealth making a difference in the health-tech, fintech space and what are your future plans?

QubeHealth is changing the way Indians are paying for their healthcare expenses. By creating a payment method that provides for medical loans on tap and the seamless integration of an individual and their corporate medical reimbursements, insurance claims or health insurance, Qube puts the control back in the hands of the individual. 

The QubeHealth User is someone who has the ability to make better healthcare decisions, through the QubeHealth Marketplace and the strength to pay for any health or medical expense. 

Healthcare providers welcome these Users as they do not need to face delayed insurance claim reimbursements and as a result, provide a better experience to these Users. 

By March 2023, QubeHealth will have over 1 Lakh Subscribers, with a pre-approved medical line of INR. 1000 Crore to pay for any health or medical expenses at no cost, and the ability to pay back in up to 24 months. 

Over the next 5 years, Qube will deploy over $2 Billion in Healthcare Credit and impact over 6 million lives, helping them bridge the gap between their healthcare expenses and what their health insurance pays for.