Page 12 - The Insurance Times June 2025

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News

Star Health Seeks Cost Rajeev Kher Appointed Chairperson of Star Health
Cuts to Boost Insurance Board
Sustainability Star Health has named Independent Director Rajeev Kher as Chairperson

Star Health and Allied Insurance, of its Board of Directors, effective from April 29, 2025, pending regulatory
India's largest standalone health in- approval from IRDAI. Kher, a retired IAS officer and former Commerce Sec-
surer, has called for a phased reduction retary, brings decades of experience in regulatory governance, international
in distribution costs, including commis- trade, and sustainable policy. He has also served on the Competition Appel-
sions, to make health insurance more late Tribunal and played a key role in shaping India's Foreign Trade Policy
(2015-2020).
affordable and sustainable. CEO Anand
Roy suggested gradually lowering the Acknowledging his appointment, Kher said, "I am deeply honoured to take
current 35% cap on management ex- on this responsibility at a time when health insurance is becoming central
penses by 1% annually. to India's social and economic resilience." Managing Director and CEO Anand
Roy welcomed the appointment, saying Kher's guidance will support the
Highlighting the disparity in regulation
company's next growth phase and further its mission of accessible and reli-
between healthcare delivery and insur-
ance, he urged GST waivers on premi- able health insurance. The appointment reflects the insurer's focus on gov-
ernance and leadership during a time of heightened sectoral relevance.
ums for senior citizens and vulnerable
groups. Roy noted medical inflation
varies, with treatment costs rising 8- UnitedHealth Faces DOJ caused its shares to drop 8% in after-
10% depending on hospitals, driven by hours trading. The insurer has faced
patient demand for advanced treat- Probe for Alleged Medi- mounting challenges, including CEO
ments. While minor and regular pre- care Fraud Andrew Witty's sudden resignation and
mium hikes are inevitable, he recom- The U.S. Department of Justice (DOJ) suspension of its 2025 financial forecast
mended rewarding healthier individu- has launched a criminal investigation due to escalating medical costs, which
als with discounts. into UnitedHealth Group over sus- led to a near 18% share price plunge.
"Ideally, 2-3% of a family's income pected Medicare fraud, according to Former CEO Stephen Hemsley has re-
should go towards health insurance," the Wall Street Journal. The probe, led turned to lead the company amid the
he advised, suggesting higher alloca- by the DOJ's healthcare-fraud unit, turmoil. The company is also reeling
tions for those covering elderly family targets the company's Medicare Ad- from the December 2024 murder of
members. Roy emphasized Star Health vantage business practices and has Brian Thompson, CEO of its insurance
operates within regulatory expense reportedly been underway since last unit. The precise criminal allegations
summer.
limits and reiterated the need for sys- remain unclear, but the investigation
temic changes to promote affordability Although UnitedHealth stated it had marks a significant blow to the
in the health insurance ecosystem. not been officially notified, the report healthcare giant.

12 June 2025 The Insurance Times