Reforms for Health insurance under budget 2018

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Mr. Arun Jaitley presented the Union Budget 2018-19 in the parliament in New Delhi on 1st February, 2018. For last four years the Government has been giving the pledge of honest, transparent, strong and confident ‘New India’ to the people of the nation. Finance Minister Mr. Arun Jaitley said that, this programs and changes will drive India among the fastest growing countries in the world.

According to him, India has stated the ambition to achieve global health coverage by the coming 2030. The major step towards the universal health coverage objective will be a successful PPP model for diagnosis and treatment. Budget 2018 will strengthen this benefit and focus on consolidating provision of good health care to economically less privileged as well as the senior citizens.

Top healthcare proposal announced on the Budget’18: Healthcare for everyone: The National Health Protection Scheme will be a government-funded health care programme. The aim is to provide a generous Rs.5 lakh per family every year to the families. That can be counted for roughly 40 percent of the country’s total population. This scheme is for secondary and tertiary care hospitalization and covers both prevention and health promotion.

Money Statistics: This year’s total budgetary allowance to the Health Ministry is Rs.52, 800 crores, with an 11.5% rise over the Rs 47,353 crores, allocated in last economic budget. The Rashtriya Swasthya Bima Yojna has Rs.2000 crores allocation from the government by which the initial money of the National Health Protection Scheme will be routed.

Senior Citizen Health Benefit: Mr. Arun Jaitley raised the Section 80D limit of the Income Tax Act relating to deduction related to Health Insurance premium to Rs.50, 000 and from earlier 30,000 giving a relief to the senior citizen of the country. It assures medical insurance or preventive health check-up of a senior citizen with a deduction of Rs.30, 000.

Modicare Scheme: The National Health Protection Scheme (NHPS) has a catchier name given by the media, ‘Modicare’. This scheme as stated will provide Rs.5 lakhs per family with an initial budget of Rs.2000 crores. This transformative health insurance program is expected to benefit 500 million people and around 40% population of India. Mr.ArunJaitley said that NHPS or ‘Modicare’ is going to be the world’s largest Government aided program by size and not budget. It is estimated that in the first year, the scheme will cover only 50% of the beneficiaries after identifying the Socio-Economic Caste Census (SECC). The first year’s requirement will be near aboutRs.5000 crores and that will be shared between Central and the State in the ratio of 60:40 and 90:10 ratio for the hill states.

Impact of the Budget 2018 on the Health Care Industry’: ‘Ayushman Bharat’ programme aims for improvement in the primary healthcare system and increase in the coverage of insurance for the poor families. There are two main areas when it comes to the budget 2018 impact on healthcare industry.

The government has a plan to set up 24 new government hospitals and medical colleges and upgrade the existing district hospitals in the whole country to increase the quality of education and healthcare of the sectors. This scheme is also making a mark to generate a huge count of jobs, particularly for women in the healthcare field as well as the amount Rs.600for the nutritional support for TB patients.

The announcement of the budget 2018 regarding the healthcare sector is clearly a path-breaking one because of the sheer size of coverage and amount committed per family. As per views of the Government, India is probably moving in the next generation of social security system towards a progressive developing country.

Choose wisely!

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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