ArdorComm Media Group

Contact Us
Menu

GST

Budget 2024: Healthcare Sector Urges Government to Boost Public Health Spending

Leave a Comment / By / Health & Wellness Community
News on Health 5 ArdorComm Media Group Budget 2024: Healthcare Sector Urges Government to Boost Public Health Spending

The healthcare sector in India is advocating for increased public health spending in the upcoming Budget 2024, urging the government to raise public health expenditure above 2.5 percent of the GDP. The industry is also calling for an Ayushman Bharat-like scheme specifically for the middle class to address healthcare needs more comprehensively. Key Recommendations: Increase Public Health Expenditure: The Healthcare Federation of India (NATHEALTH) has emphasized the need for the government to boost healthcare spending to over 2.5 percent of GDP. This increase is seen as crucial for enhancing infrastructure, addressing demand and supply challenges, and improving overall social insurance. Expand Healthcare Facilities: Abhay Soi, president of NATHEALTH and chairman of Max Healthcare Institute, highlighted the necessity for two billion square feet of advanced healthcare facilities. Expanding healthcare infrastructure in smaller cities and advancing digital healthcare services are also top priorities. Comparison with Other Countries: According to the Economic Survey 2022-23, healthcare expenditure by the Centre and state governments reached 2.1 percent of GDP in FY23. In comparison, OECD data shows that the US had the highest health expenditure to GDP ratio at 16.6 percent in 2022, while India’s was at 2.9 percent. Middle-Class Healthcare Scheme: Industry leaders, including PD Hinduja Hospital CEO Gautam Khanna, suggested implementing a healthcare scheme similar to PM-JAY for the middle class. This would require allocating 2.5-3.5 percent of GDP to healthcare to ensure broader coverage and affordability. Policy Reforms and Innovations: Suneeta Reddy, Managing Director of Apollo Hospitals, emphasized the need for the government to prioritize the healthcare sector to spur growth and productivity. The industry is also advocating for easing compliance burdens, promoting medtech innovation, rationalizing the goods and services tax (GST), and reviewing the health cess on medtech products. As the first Budget of Modi 3.0 approaches, the healthcare sector’s recommendations highlight the critical need for increased investment and policy support to enhance India’s healthcare infrastructure, improve access to quality healthcare, and ensure affordability for all citizens. Boosting public health spending is seen as a vital

Centre Considers Lowering GST to 12% for Health Insurance Premiums, Aiming to Expand Coverage

Leave a Comment / By / Health & Wellness Community
News on Health 16 ArdorComm Media Group Centre Considers Lowering GST to 12% for Health Insurance Premiums, Aiming to Expand Coverage

The Centre is contemplating a reduction in the Goods and Services Tax (GST) rate on health insurance premiums from the current 18% to 12%, particularly for premiums up to Rs 30,000. This move aims to make health insurance more affordable and accessible, potentially widening coverage across the population. Currently, with the prevailing market rates, a health insurance premium of up to Rs 30,000 could secure coverage of approximately Rs 10 lakh per annum for a family of four members. The proposed reduction in the GST tax rate could result in decreased premium rates or the introduction of additional health coverage options tailored to the needs of individuals and families. An official stated that this proposal, among others, is pending and may be discussed in the GST Council following the general elections. The initiative aligns with the recommendations of the Parliamentary Standing Committee on Finance, chaired by BJP MP Jayant Sinha, which emphasized the need to rationalize the GST rate on insurance products, especially health and term insurance. The committee suggested lowering GST rates on health insurance products, particularly for retail policies targeting senior citizens and microinsurance policies, along with term policies. Since the implementation of GST, individuals purchasing health insurance policies have been subject to an 18% GST rate, marking a 3% increase compared to the previous Service Tax rate of 15%, including applicable cess. Furthermore, the report underscores the importance of extending health coverage to vulnerable populations, as highlighted by the Niti Aayog’s recommendation to extend the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (PMJAY) scheme to the ‘missing middle’ on a paid basis. PMJAY currently provides free health coverage of up to Rs 5 lakh per year to 107 million economically disadvantaged households, constituting 40% of the population. The potential reduction in GST on health insurance premiums reflects a broader effort to enhance healthcare accessibility and affordability, aiming to mitigate financial risks associated with medical expenses and promote comprehensive health coverage across India’s diverse population.