What Niti Ayog report suggests to improve health systems for the future

By: |
Published: November 23, 2019 12:32:22 AM

The large OOP health spend that the average Indian household incurs can be leveraged to prop universal health insurance, given risk-pooling will mean lower premiums and, thus, lower costs for the household.

The government needs to keep in mind the problems that beset PMJAY as it considers NITI’s recommendation.The government needs to keep in mind the problems that beset PMJAY as it considers NITI’s recommendation.

NITI Aayog recently came up with a report on transforming the health system for ‘New India’. Given India spends about 1.13% of its GDP on health, it has a low per capita (PPP) spend. The low penetration of health insurance has meant that as much as 62% of health expenditure incurred by households is borne out-of-pocket (OOP).

With non-communicable diseases on the rise, a healthcare only focus for a health-systems strategy is not advisable. Thus, while the NITI report talks of fulfilling the unfinished public health agenda in the country, it also talks of universalisation of health insurance, so that health spends are geared more towards insurance than OOP payments.

The large OOP health spend that the average Indian household incurs can be leveraged to prop universal health insurance, given risk-pooling will mean lower premiums and, thus, lower costs for the household.

The NITI report doesn’t explicitly state this, but talks of the state-funded PMJAY becoming the model for expanding health insurance coverage. The government needs to keep in mind the problems that beset PMJAY as it considers NITI’s recommendation.

At the same time, consolidation in the health-service-provision ecosystem would also help lower costs for the households and make digital analysis of health data easier. At the moment, 98% of the health service providers employ 10 or fewer people.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Half-measures will not fix economy
2NRC is fraught with problems, needs wider discussion
3Tackling slowdown: Ignite rural demand for quicker economic recovery