State-funded health cover for all Indian citizens by 2017

The Planning Commission of India has suggested the introduction of a state-funded health insurance programme in 12th five-year Plan (2012-17) to provide health cover to all Indian citizens. The board as advised the government to formulate fiscal inducements for beneficiaries of the program and their employers to urge them to take part in the plan.

The 12th five-year Plan will explore the potential of starting a state-funded  health insurance plan for every citizen along the lines of the Rashtriya Swasthya Bima Yojana. RSBY is presently available to certain selected groups.

RSBY was started in year 2008 and is presently providing health insurance to approximately 24 million poor people in the country. 

“It’s a step in the right direction but the government needs to decide on a few things, including “the definition of healthcare, who’ll fund it, whether it will be a public-private partnership and whether it will be for families both above and below the poverty line,” said Amarnath Ananthanarayanan, CEO Bharti Axa General Insurance.

A panel official said, “Details of the plan will be formulated once the actual implementation starts, said who declined to be identified. This is just the idea now. When actual implementation happens then all these concerns will be addressed.”

British Riots to Cost Insuring Companies Dearly

Riots in London and other cities are probably going to cost insuring companies millions of pounds. London was hit by three straight nights of rioting, plundering and arson by anarchists who wrecked havoc in parts of the British capital. On Monday, violence spread out to other cities.

Insurance analysts are forecasting a repair bill amounting to tens of millions of pounds which has to be absorbed by insurance industry. The insuring companies have to pay as 125 year old British law makes the constabulary liable for property damage induced by rioting and plundering.

According to law, police force is responsible for holding law and order and in case they fail, they have to pay for the damage. This would put police finances under pressure. In 2001, Police force filed for the insurance claims after being forced to pay for fixes and repairs following riots in English towns of Bradford, Burnley and Oldham.

Health Insurance Booming in India

Health insurance market in India is seeing an enormous development since last few years in wake of raising consumer awareness and quickly flourishing health care infrastructure. Health insurance is the fastest growing sector among the general insurance section in India.

Studies have shown that India’s increasing population and public preference for private health-care sector over public healthcare sector is enhancing the growth of the health-care delivery market. The lack of basic infrastructure in healthcare facilities is providing opportunities to overseas investment companies. After USA, India has one of the biggest numbers of Joint Commission International (JCI) sanctioned hospitals.

In addition, the health-care sector is growing rapidly due to raised private-public partnerships in several different ventures. The Indian government is also attempting to develop better health-care base in the country.

Insurers Compel Hospitals to Cut Down Inflated Bills

Until recently, most of the hospitals in India had a different billing structure for patients covered under insurance. These patients were charged higher than the normal patients. The insurance industry wanted this to end and answered to this dual billing structure by bringing in its own standard rate cards for various treatments and made a panel of sanctioned hospitals for cashless treatments. 

Now the inflated billing has stopped and if any patient is overcharged, the insurers force hospitals to refund the extra amount to patients. This way, patients are benefitting from the standardized billing structure for common medical treatments. This has also cut down the health insurance rates and has reduced pressure on the insurers.

Health insurance companies have also negotiated to bring most of the major hospitals in the preferred provider network (PPN). Currently, cashless treatment is available in 456 hospitals in Delhi, Mumbai, Chennai and Bangalore.

Rashtriya Swasthya Bima Yojana To Cover More Workers

Government health insurance scheme, Rashtriya Swasthya Bima Yojana is broadening its horizons to cover seven more unorganized worker sectors; auto rickshaw and taxi drivers, miners, rickshaw pullers, sanitation workers, rag pickers will soon be covered under this scheme.

Rashtriya Swasthya Bima Yojana (RSBY) is the brain child of Government of India’s Ministry of Labour and Employment and was started on1st April 2008.
The aim of RSBY is to provide health insurance coverage for all families Below Poverty Line (BPL).

Under RSBY, Beneficiaries are covered up to Rs. 30000 for hospitalization charges for almost all types of diseases. All pre-existing medical conditions are covered from first day onwards and no age limit is defined. Five members of a family are covered, including the main earner, spouse and their three dependents.

The registration charges are only Rs. 30, p[aid by beneficiary while the premium is paid by the State and Central Government.