Are millennials not ready for healthcare?

Sandeep Patel

There is no consensus definition; millennials are the nation's largest living generation. The U.S. Census Bureau millennials as those born between the years 1982 and 2000, numbering 83.7 million. Millennials are a distinct generational category because of their openness to a range of different types of media. Though they are seen to be a digital-first generation, analysts note that what actually sets them apart is their openness to multiple channels.

Tech-savvy, digitally enabled and discerning millennials have surpassed baby boomers on their way to comprise the biggest group in the healthcare market. Reaching the age of 25 years is a new benchmark for millennials, as they mark a new rite of responsibility, pressure to build a family and that of securing their future which involves their life, health, status among others. This is the perfect time for them to buy health insurance for the first time.

Millennials tend to ignore all kinds of medical health insurance coverage. However, due to the compulsions of working professionals’ lifestyles, it is becoming essential to get covered under a health insurance plan that covers new-age health problems increasingly found among young professionals. Gen-Y digs the Internet for travel and stay options, and is more willing than the earlier generation to share accommodation. This means that these millennial do not only need a basic health cover but an International Health Coverage that wouldn’t stop them from achieving their goals nor let them stress about their medical expenses, if needed, globally.

There are a few reasons why millennials are not spending their savings in buying a health cover:

All true jargon

Being familiar with insurance terminology is key to being an advocate for your health as you use your existing health insurance plan or select a new one. Younger adults and those who are uninsured may need more help understanding how to use their plans, especially if they are being insured for the first time.

'It won’t happen to me'

There are a variety of things in which we all think we are above average, including health, popularity, memory, attractiveness, and even academic and job performance. Though the incidence of hospitalization is low in young age, one cannot rule it out totally. A hospitalization caused due to dengue can cost you Rs 1 lakh. There is also an excuse of employer provided health insurance cover. But given the high propensity of jumping jobs one cannot ignore the need when he is between two jobs. If you join a start-up, there is a high chance that you may not have employer provided health insurance.

Premiums are just one factor

Millennials face student loans and credit card payments and are often working within a tight budget, but they should consider how much they can afford to spend for out-of-pocket costs if they have an accident and wind up in the emergency room. Monthly premiums remain a large concern for these freshers.

You love where you work

Although pay and compensation are still very important for most millennials seeking a job, it is not always the primary factor that determines where they work. Other issues have become increasingly relevant, such as autonomy, respect and being treated fairly, and they expect employers to be able to provide these conditions in their workplace.

Social Media is king

Millennials want to use digital channels for familiar experiences, such as scheduling a doctor’s appointment. But when they are confused and overwhelmed by complex decisions, such as choosing a health plan, they expect knowledgeable live assistance right away to have their questions resolved on first contact. Insurers that deliver inconvenient experiences or poor customer service fall short on meeting millennial expectations.

The writer is MD & CEO, Cigna TTK Health Insurance