Health Is Wealth
A redesigned national health insurance policy promises to improve India's social safety net
Indian governments have an abysmal record in providing healthcare. Among major economies, India has perhaps the most vulnerable population when it comes to dealing with health emergencies. Around 58% of total healthcare expenditure is borne by patients directly, without insurance or reimbursements. Since 2008, central governments have tried to address the problem through a cashless national health insurance scheme, RSBY, for economically vulnerable people. In a welcome move, health ministry plans improvements here by bundling RSBY with a few other schemes, and enhancing the extent of insurance cover. A well designed health insurance scheme is a key component of a social safety net.Some states have taken upon themselves the responsibility of providing health insurance. But given the growing extent of labour mobility in India, there is a strong need for a national portable health insurance policy such as RSBY.
RSBY, a centrally sponsored scheme where the Centre and states jointly pay the insurance premium, has had a mixed record. According to the government, only about 37 million families of the target group of 73 million have been covered by the scheme. Moreover, only 19 states have signed up to partner the Centre to fund RSBY. It's critical, therefore, to use the experience of the last few years to improve the scheme.
There are two important points which should serve as guideposts for the new national health insurance plan. Existing plans cover hospitalisation, while a significant proportion of out of pocket expenses are on out-patient treatments and medicines. A redesign which seeks to cover these areas will provide benefits to everybody .For patients, it will ease the pressure of healthcare expenses. This will also help government as there is evidence to suggest that the insured opt for costlier hospitalisation in the absence of out-patient cover.Another key factor in the redesign should be inherent flexibility which will allow a national policy to dovetail existing state policies.
A national health insurance policy has not been an expensive proposition. The Centre has spent Rs 4,853 crore in the last four years, which is around what it is reportedly willing to spend in a single year under the redesigned health insurance policy . In all likelihood, economies of scale will make a national insurance policy less expensive than initial estimates. The forthcoming budget should outline the contours of this policy as it is a critical component of India's health.
Source: Times of India, 17-02-2016
RSBY, a centrally sponsored scheme where the Centre and states jointly pay the insurance premium, has had a mixed record. According to the government, only about 37 million families of the target group of 73 million have been covered by the scheme. Moreover, only 19 states have signed up to partner the Centre to fund RSBY. It's critical, therefore, to use the experience of the last few years to improve the scheme.
There are two important points which should serve as guideposts for the new national health insurance plan. Existing plans cover hospitalisation, while a significant proportion of out of pocket expenses are on out-patient treatments and medicines. A redesign which seeks to cover these areas will provide benefits to everybody .For patients, it will ease the pressure of healthcare expenses. This will also help government as there is evidence to suggest that the insured opt for costlier hospitalisation in the absence of out-patient cover.Another key factor in the redesign should be inherent flexibility which will allow a national policy to dovetail existing state policies.
A national health insurance policy has not been an expensive proposition. The Centre has spent Rs 4,853 crore in the last four years, which is around what it is reportedly willing to spend in a single year under the redesigned health insurance policy . In all likelihood, economies of scale will make a national insurance policy less expensive than initial estimates. The forthcoming budget should outline the contours of this policy as it is a critical component of India's health.
Source: Times of India, 17-02-2016
