Health insurance of up to Rs 5 lakh to all Indians may be announced in 2018 budget of Modi govt

PM Modi
Prime Minister inaugurates Defence Expo in Chennai

New Delhi, Jan 18: If reports are anything to go by, then the Narendra Modi government in the 2018 budget is going to give a big boost to the health insurance of citizens of India. According to the in the Centre, under the Central Sponsored Scheme, a provision of Rs 5,000 crore will be made to provide health insurance to all.

Even Private insurance companies can get a bigger role in this scheme. The state will have to bear 40 percent of the total expenditure and 60 percent would be contributed by the Central Government.

Hindi daily Prabhat Khabar reported that every citizen would become under the insurance coverage of up to Rs 5 lakh.

The report in the Prabhat Khabar said that Finance Minister Arun Jaitley, who would present the Union Budget 2018 on February 1, may earmark Rs 5,000 crore under Centrally Sponsored Scheme (CSS) for the health insurance scheme.

CSS are schemes that are largely funded by the central government with a defined state government share.
The government would also be setting up a trust to roll out the scheme, under which everyone would be given Health insurance up to Rs 3 lakhs.

According to the report, the health insurance scheme would be in three types – Kalyan Scheme for BPL, Saubhagya Scheme for people under Rs 2 lakh of annual income and Sarvodaya scheme under which all people above Rs 2 lakh of annual income will be covered. There will not be an income limit for the beneficiaries.

The government will pay the insurance premium of people in the BPL category and those earning less than Rs 2 lakh of annual income. People earning above Rs 2 lakh will be charged to pay a very minimal premium.

Only 4 percent of the total population in the country is under the coverage of Health Insurance. Moreover, the healthcare expenditure of people constitutes up to 86 percent of total healthcare spending in India, according to the Healthcare Federation of India NATHEALTH report.