Surgery Costs Surge By 300 Per Cent Over Last Decade: Learn To Manage Expensive Health Bills

The healthcare system in India has seen massive growth over the past decade, from robotic surgeries to critical diagnostics. While medical science has moved forward, thanks to technology and infrastructure development, so have the costs of availing these services. And in some cases, they have moved far too fast, especially when it comes to critical treatments such as surgeries.

According to a new analysis by Policybazaar, an online insurance marketplace, the cost of undergoing surgery in India has surged by over 250 to 300 per cent over the last decade. These numbers could mean a crisis in affordability, particularly for those people who do not have adequate health insurance coverage.

A Decade of Steep Rises

The data shows a trend where major surgeries have become significantly more expensive between 2013-2024.

For instance, cancer surgery now costs approximately Rs 50.8 lakh, nearly four times the cost in 2013, which stood at Rs 13.5 lakh.

Heart transplant costs have risen from Rs 9.8 lakh to Rs 34 lakh during the same period.

Kidney Transplants increased from Rs 5 lakh in 2013 to Rs 18.2 lakh in 2024.

Liver cirrhosis-related surgeries have also seen a steady rise from Rs 7 lakh (2013) to over Rs 24 lakh (2024).

Some of these surgeries are not elective procedures, they are often urgent and life-saving interventions. Still, the average Indian household remains financially unprepared to handle them.

Even routine and common surgeries have seen a significant inflation, for instance:

Knee Replacement surgeries now cost around Rs 7 lakh, up from Rs 2 lakh in 2016.

Cataract surgeries cost Rs 1.26 lakh in 2025, compared to Rs 35,000 in 2016.

Appendectomies, a surgical procedure to remove the appendix, now cost Rs 1.58 lakh in 2025, a significant rise from Rs 45,000 in less than a decade.

(Note: The costs may vary based on the hospital and the cities.)

What is behind such a steep rise in costs?

There are several structural as well as market-driven factors contributing to such a sharp rise in healthcare expenditures, such as:

• Medical Inflation is the top reason which has led to an increase in healthcare services. It has been consistently higher than general inflation in India.

• Technological Advancements in terms of robotic and minimally invasive surgical treatments have not only improved outcomes but raised the cost of these procedures.

• Hospital infrastructure upgrades particularly in Tier-1 cities have brought more amenities for the city dwellers but with premium pricing has a significant spike in costs.

• Growing demand for surgeries, as per PolicyBazaar analysis, such as joint replacements and cataract operations are also behind cost surges. This is mainly because, as the population ages, the demand for surgeries like knee replacements and cataract procedures also goes up. Such a demand-supply imbalance leads to higher prices.

• Import dependence on medical devices, implants, and surgical equipment makes procedures vulnerable to currency fluctuations and global pricing.

• Surge in chronic diseases such as cancer and cardiovascular diseases, that require complex and prolonged treatment also affect the costs. The data shows that India now sees 1 in 4 deaths from cardiovascular diseases, and cancer incidence is growing.

The real cost of the increase in medical services is not just financial, it’s also emotional. How? The report points out that when families are unable to afford a necessary surgery, they would either:

• They delay care, often worsening prognosis, or

• They turn to loans or exhaust savings.

Therefore, healthcare without insurance tends to push households into a vicious cycle of health shocks and financial ruin.

Here’s How Health Insurance Can Help

Health insurance, particularly one that is comprehensive and provides you with high-sum insured plans, plays a significant role in cushioning your finances against such high medical inflation. According to Policybazaar, around 75 per cent of Indians pay for medical services from their pocket. They are not covered by any government or private health insurance scheme. This is a crack that many Indians fall through every day.

Some key benefits of having a robust insurance cover are:

• Cashless hospitalisation at network hospitals, reduces the burden of upfront payments during emergencies.

• Coverage for advanced treatments, including organ transplants, chemotherapy, robotic surgeries, and more.

• Access to OPD consultations, second opinions, mental health support, and even home care in premium plans.

Moreover, a health insurance plan ensures that care is not delayed due to financial constraints, a major factor in long-term recovery and prognosis.

What is the adequate coverage to have in health plans, keeping surgical costs in mind?

With advanced surgeries now costing upwards of Rs 30 to 50 lakh, even a Rs 25 lakh or Rs 50 lakh cover might not be enough, particularly when dealing with multiple procedures, long hospital stays, or complications.

A Rs 1 crore family floater plan, once considered excessive, is now being seen as a practical safeguard for households.

How much would it cost?

For two adults aged 35 in Delhi, a Rs 1 crore comprehensive family floater plan (with OPD, pre/post hospitalisation, cashless treatment) can cost around:

Rs 2,000 - Rs 2,500 per month when paid monthly.

Annual premium: Rs 24,000 to 30,000 (approx.)

An adequate health cover can save you a lot of money against such annual premiums, particularly when even a single critical surgery can wipe out a decade of savings.

It’s not in your control when an illness might strike you or the family, but you can control how prepared you are. If a single heart surgery can cost more than a year’s salary, it’s better to be prepared with adequate health insurance.

As surgery costs rise, so must awareness and coverage. Now, the question is not whether one can afford health insurance, it’s whether one can afford to go without it.

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