Health Insurance to the Base of the Pyramid Harvard Case Solution & Analysis

The case describes a distinctive insurance system called Krupa Arogya Suraksha, promoted by the Shree Krishna Arogya Trust (Trust). The merchandise was designed with the aim of expanding basic health coverage to the "base of the pyramid" (BoP) people for a manageable premium. The services were supplied by Shree Krishna Hospital.

The Trust was looking at a win-win scenario: in providing modern health services to a larger, lower-income group, the facilities and infrastructure of the hospital would be better utilized. These members/consumers accounted for 13 per cent of patients. Thus, the double aims of extending affordable healthcare to the lower-income segment and increased usage of the facilities at the hospital were reached to a point.

But, the Trust was dependent on donors to absorb the shortfall and was not able to satisfy the cost of the health care offered under the system from the premiums collected. The Trust's management was searching for methods to earn the scheme pay for itself and was concerned concerning the sustainability of such an arrangement.


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