New Delhi, Aug. 29 -- The proposal by the Group of Ministers (GoM) to exempt health insurance premiums from Goods and Services Tax (GST) is more than a mere fiscal adjustment; it marks a crucial step in reshaping India's health insurance market. Premiums currently attract 18% GST, which makes health insurance unaffordable for many middle-income families and senior citizens. Removing this levy would not only reduce prices but also reinforce the view that health insurance is a necessity rather than a luxury.

The case for reform is compelling. Healthcare inflation in India has consistently outpaced overall consumer inflation, leaving households vulnerable to financial shocks. For many families, an unforeseen medical emergency can erode year...