Union Budget 2018: FM Arun Jaitley unveils world's largest health plan

New Delhi/ Chennai: Unveiling the world’s largest government-funded healthcare programme, finance minister Arun Jaitley on Thursday announced the setting up of National Health Protection Scheme (NHPS) to offer coverage of up to Rs 5 lakh per year to 10 crore poor and vulnerable families for secondary and tertiary care hospitalisation. 

 

Noting that only a swasth Bharat (healthy India) can be a samriddha Bharat (prosperous India), Mr Jaitley said that India cannot realise its demographic dividend without its citizens being healthy. The NHSP, he said, will cover approximately 50 crore people.

“This will be the world’s largest government-funded healthcare programme. Adequate funds will be provided for smooth implementation of this programme,” the finance minister said.

Secondary medical care is provided by a specialist or facility upon referral by a primary care physician. Tertiary care is specialised consultative health care, usually for inpatients.

While not specific allocation has been made for the scheme, at the current commercial rate of premium, NHPS could cost the government up to '1.5 lakh crore. Experts are unclear about how the government will implement the scheme without specifying allocation.

At present, the government has a Rashtriya Swastya Bima Yojana which provides a cover of Rs 30,000 per family.  While the RSBY has received an increased allocation of Rs 2,000 crore in the Budget, NHPS has not got any.  “If we go by the current commercial rate of 3 per cent premium, for a family of five the government will have to pay a premium of Rs 15,000. For 10 crore families, this is would cost Rs 1.5 lakh crore,” an expert said on condition of anonymity.

“Announcing the scheme at this time looks like it is politically inspired,” he added.
The total Gross Written Premium of the general insurance industry was Rs 1.7 lakh crore last year. The entire budgetary allocation for family and healthcare is just Rs 52,800 crore, up 11.5 per cent from last year’s Rs 47,353 crore.

Lakhs of families in India have to borrow or sell assets to receive indoor treatment in hospitals, Mr Jaitley said, emphasising that his government is seriously concerned about poor and vulnerable families.