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LATEST NEWS UPDATES | It is time for Arun Jaitley to put money behind last year's Budget promises for healthcare -Indranil Mukhopadhyay

It is time for Arun Jaitley to put money behind last year's Budget promises for healthcare -Indranil Mukhopadhyay

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published Published on Jan 30, 2018   modified Modified on Jan 30, 2018
-Scroll.in

To spend 2.5% of GDP on healthcare by 2025, the centre and state governments must increase healthcare allocation by 24% over the same period of time.

Healthcare needs continue to cause financial hardship to people across India. The National Health Accounts 2014-’15 report reveals that more than two-thirds of total spending on health (67%) is household out-of-pocket expenditure. The report tracks how much money is spent on health and how money flows from households or governments and eventually reaches the hospitals and dispensaries.

Public spending on health, as per National Health Accounts, declined from 1.15% of GDP in 2013-’14 to 1.13%. Out of every Rs 10 spent on health, Rs 4 is spent on medicines, purchased mostly by households from retail pharmacies. Expenditure on medicine alone pushes 34 million people into poverty every year.

Investment on preventive and public health is alarmingly low – only one-tenth of total spending goes to preventive care like disease control programs and immunisation. Given the resurgence of many communicable diseases like malaria, kala azar, recurrent epidemics of dengue and cholera and increasing burden of communicable diseases, it is high time that public investment is increased to strengthen the public health system.

India also lags on public and private health insurance with only 33% of the population opting for schemes that allow for risk pooling, which brings people with various health risks into one scheme to ensure that people are not discriminated against based on their healthcare needs. Similarly very few people prepay into insurance schemes in anticipation of possible health expenses. Prepayments are often much lower than healthcare costs and ensures that people are not denied care because of financial constraints.

Contrary to commonly held notion, along with social insurance and private voluntary insurance, government tax-funded programmes also have features of both risk pooling and prepayment. Globally, governments have invested heavily on health to expand risk pooling and prepayment mechanisms to reduce household burden.

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Scroll.in, 29 January, 2018, https://scroll.in/pulse/866694/it-is-time-for-arun-jaitley-to-put-money-behind-last-years-budget-promises-for-healthcare


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