'Modicare', World's Largest Health Care Scheme To Cost 11,OOO Crore Per Year

Ray Weaver
February 3, 2018

The "National Health Protection Scheme", dubbed as "Modicare" and the world's largest government healthcare programme, will be funded with 60 per cent contribution coming from the Central government and the remaining from the states, said NITI Aayog advisor Alok Kumar. "We believe that more inclusive programmes and innovative public private partnerships under country's National Health Mission 2020 would further support patients and help ensure a Healthy India", Country Head of Shire India Vineet Singhal said.

Meanwhile, seeking to allay concerns about the funding of the scheme, Health Minister J P Nadda assured that finances will never be a problem and said the Centre was working out the nitty-gritties of the programme. It can be on trust model, it can be on insurance model.

Jaitley did not give details of the programme, or how the Narendra Modi government plans to bear the cost, a fact highlighted by Maulik Doshi, partner, transfer pricing and transaction advisory services, SKP Business Consulting, an Indian consultancy firm.

If assuming the model to be insurance led, the premium shrinks with the increase in number of policy holders, he said at the event organised by Open magazine. The unnamed official added that under the new scheme, the government estimates the cost of insuring each family would be about Rs 1,100. This would be a very simple appraoch.

- Hike in deduction limit for health insurance premium and/or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D.

The scheme will cover about 2.43 crore families in the state.

Amol Naikawadi, joint managing director of Indus Health Plus, a preventive healthcare firm, said the government should have paid attention to health checkups and diagnosis too. Compare this to the Rs 3.02 trillion (Rs 3,02,425 crore) on health in the year 2014-15.

Niti Aayog CEO Amitabh Kant said the challenge is not resources for the scheme but challenge is its implementation.

Finance Minister Arun Jaitley on Thursday proposed several tax benefits for senior citizens of the country in the Union Budget proposals for 2018-19. The government is seriously concerned about such impoverishment of poor and vulnerable families.

ICICI Lombard General Insurance MD Bhargav Dasgupta also lapped up the move to provide Rs 5 lakh cover per annum to per family as a significant step forward from the mass healthcare schemes launched in the past.

The National Health Protection Scheme (NHPS) which will be a joint venture of both Centre and State, according to reports, at least 4 in every 10 people will be able avail the benefits of this scheme.

The NHPS, which is modelled along the lines of Obamacare, indicates the government's intent to further the beneficiary pool for healthcare sops. The government will also work on upgrading hospitals to medical colleges.

Setting up of hospitals in various districts is the state subject under the federal structure, he added.

Health and Wellness centres also found a place front and centre during the speech.

Kumar said around 6-7 crore persons fall into poverty each year due to medical expenses and they are often in non poor category.

Other reports by Insurance News

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