Covid impact: SC asks Centre whether it can urge insurance companies to pay medical dues promptly

The Supreme court on Wednesday has asked the Centre government whether it can urge the insurance companies to clear the medical dues promptly amidst the covid-19 pandemic.

The bench headed by Chief Justice SA Bobde said, “When there's a pandemic, insurance companies cannot keep their hands off.”

The bench also comprising Justice AS Bopanna and V Ramasubramanian observed that some formula for cheaper treatments could be generated for smaller towns.

The Central Government reiterated its earlier stand and submitted before the court that the issue of caps on pricing or Covid treatment should be left to individual state goverments. “Cost of treatments should be earmarked, “ said government.

Senior Advocate Harish Salve, representing the private hospitals, NATHEALTH and AHPI, opposed the cap on treatment and said that a cap on pricing of COVID treatment will grievously hurt private hospitals. He also stated that people with insurance should not be allowed price caps.

Salve apprised the three judge bench that, “As of yesterday, in Delhi alone, out of 15000 beds in Govermentt Hospitals, 12000 are empty.” He added that the concern about profiteering would be understandable if there was a rush, and people were being forced into private commercial hospitals.

“How do you bill patients when a cancer patient also contacts Covid-19, what about cases of co-morbidity?” questioned Salve.

The case will be next heard after 2 weeks.

The petition, filed by Advocate Sachin Jain seeks regulation of covid-19 treatments costs across private and corporate hospitals in the country. He has cited that as much as Rs12 Lakh is being asked for covid-19 treatment in certain private hospitals. He has sought directions from the top court for the government to issue notification regarding nationwide cost regulations for covid-19 treatment at private hospitals.

The apex court on 14 July had expressed its unwillingness to set a uniform rate for Covid-19 treatment and observed that medical facility and condition vastly vary from state to state. However, it held that no individuals should be denied treatment due to high rates.

The Centre in its reply filed on 5 June, had submitted that it had no statutory power under the provisions of law to direct a charitable or private hospital to give free treatment to covid-19 patients. The Centre added that it is the state government who could possible issue directions to the hospital