Indian budget also came up with world’s largest healthcare Programme – Modicare

New Delhi: India to new programme that to largest in world’ with government funded national health programme according to the Budget 2018 announced by FM Arun Jailtey on Thursday. The mega scheme for the poor will give the sector big boost with cost of RS 1lakh core as per some estimates so it’s really biggie’s project as when India progress towards. A mega health insurance scheme to cover four out of five, as Jailtey termed  it ‘Modicare’ on the lines of ‘obamacare’ as similar to one American universal health insurance plan launched during presidency of Barack Obama.

However   The National Health Protection Scheme (NHPS) aims to offer health insurance up to Rs5 lakh per family per year, covering over 100 million vulnerable families, and benefitting about 500 million people. Both secondary and tertiary care hospitalization will be covered. Jaitley claimed that Modicare will be more successful than Obamacare. Jaitley said in budget speech “This will be the world’s largest government-funded healthcare programme. My government has now decided to take health protection to a more aspirational level. Adequate funds will be provided for smooth implementation of this programme. The government is steadily but surely progressing towards the goal of universal health coverage”

Reports Based on the cost of the existing Rashtriya Swasthya Bima Yojana (RSBY), back of the envelope calculations show it would require Rs 30,000 crore while The National Health Protection Scheme (NHPS) will provide 100 million families with medical coverage of up to Rs 5 lakh per year for secondary and tertiary care hospitalization. RSBY provides Rs 30,000 cover for up to five members of a below the poverty line (BPL) family. The Centre provides 75% of the total premium while states pay the rest. Around 36 million of 59 million BPL families across 15 states are enrolled in the RSBY scheme. The allocation for RSBY rose to Rs 2,000 crore in FY19 from Rs 470.52 crore in FY18. Given that the cover under NHPS is Rs 5 lakh and the coverage is more, the Rs 470.52 crore spent in FY18 topped up with 25% provided by states, when proportionality increased yields about Rs 30,000 crore costs.

Former finance minister P Chidambaram said, “If the insurance companies will foot the bill, the premium at Rs 5,000-15,000 per family will require an outgo of Rs 50,000-150,000 crore per year. Is the FM serious?” “The scheme announced would mean the government would be required to spend at least Rs 1.2 lakh crore in premiums to private health insurance firms to extend coverage to 50 crore people,” health economist Indranil Mukhopadhyay said.

NITI Ayog member Vinod Paul said “A major highlight of the budget is the launching of the scheme which is India’s leap towards universal health coverage. The National Health Protection Scheme will provide a desired cover for the secondary and tertiary care per family. This will be the largest government-funded health protection scheme and will ensure that impoverishing spending by the poor and the vulnerable will diminish.” As per economic times.

However Jaitley said government currently not allocated the fund, but as on analyses from sources  it came up to  Prime Minister Narendra Modi’s plan to provide health insurance for about half the country’s population would require an estimated 110 billion rupees ($1.72 billion) in federal and state funding each year, an official told Reuter.The said scheme, the government’s”Modicare”, federal budget for 2018/19 would provide 100 million families, or about 500 million poor people, with a health cover of 500,000 rupees per year for free treatment of serious ailments. In its budget, the government announced a federal allocation of 20 billion rupees for the scheme in 2018-19, but officials say more funds would be made available as the programme is rolled out over the year. Currently, several state governments offer some form of health insurance which marginally small and poorly implemented while this new scheme, the government estimates the cost of insuring each family would be about 1,100 rupees ($17.15), said the government unanimous official said as per knowledge of the matter. It was raised to statement as Modi faces a national election next year and the health programme is seen as a signature initiative to woo voters in the countryside, many of whom struggle with high healthcare costs said by critics.