Universal Health Care Plan Put on Hold by PM Modi as Costs Escalate

Prime Minister Narendra Modi has asked its officials to put a brake on the ambitious universal health care plan after costing comes at $1.16 trillion over five years, which would make country’s financial crunch more severe.

Read More

Get ₹5 Lac Health Insurance starts @ ₹200/month*
Tax Benefitup to Rs.75,000
Save up to 12.5%* on 2 Year Payment Plans
7 Lakh+ Happy Customers

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Get insured from the comfort of your home No medicals required
I am a

My name is

My number is

By clicking on ‘View Plans’ you, agreed to our Privacy Policy and Terms of use
Close
Back
I am a

My name is

My number is

Select Age

City Living in

    Popular Cities

    Do you have an existing illness or medical history?

    This helps us find plans that cover your condition and avoid claim rejection

    Get updates on WhatsApp

    What is your existing illness?

    Select all that apply

    When did you recover from Covid-19?

    Some plans are available only after a certain time

    Last year, the health ministry had formulated a draft policy on universal health care in coordination with the prime minister's office. The National Health Assurance Mission aims to offer free drugs, diagnostic services and insurance to India's 1.2 billion people. The plan was initially proposed to roll out from April 2015 and in October, 2014 the costing was projected as $25.5 billion over four years. By the time it was presented to Modi, the total costing had been reduced to 1.16 trillion, which is still very high.

    Ahead of the Center election, Modi’s manifesto accorded ‘high priority’ to the health sector and promised a universal health insurance plan. The manifesto clearly detailed that previous health schemes had failed to meet bourgeoning medical needs of public.

    At present, India spends nearly 1 percent of its gross domestic product (GDP) on public health, however, in the badly managed health system; these funds are not completely utilized. Even in this year federal budget, the allocation to the health department was only increased by 2% as compared to the previous year.

    The health plan was drafted in consultation with Modi’s office and an expert panel, including an expert from the World Bank. The proposal included insurance coverage to expensive ailments like organ failure, heart surgery, etc.  Now chances are high that this benefit will also be withdrawn.

    The decision to curtail level of insurance coverage will have an adverse impact on the country’s private health sector, which would have seen a massive business growth as the programme channeled millions of new patients into private hospitals. The health insurance is not very popular among people and currently only 17% of India’s population is having health insurance. 

    Source: This article has been adapted from the article " Spending cuts: PM Modi puts brakes on promised universal health care plan" that appeared on Mar 27, 2015 in firstpost.com.

    Search
    Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

    Health insurance articles

    Recent Articles
    Popular Articles
    12 Tips to Avoid Common Health Problems During Summers

    12 May 2022

    India experiences a hot and dry summer season that lasts for up to...
    Read more
    Does Medical Insurance Cover Hearing Aids?

    12 May 2022

    The number of people who require hearing aids continues to grow...
    Read more
    Are Accidental Injuries Covered by Health Insurance in India?

    12 May 2022

    Accidents are unpredictable. Getting injured in an accident not...
    Read more
    6 Most Effective Ways to Prevent Viral Fever

    12 May 2022

    A change in weather can bring respite from the scorching summer...
    Read more
    Does Health Insurance Cover Death?

    06 May 2022

    Life is unpredictable and so is death. A lot of people lose their...
    Read more
    PMJAY Scheme: Ayushman Bharat Yojana Eligibility & Registration Online
    Prime Minister Shri Narendra Modi announced the launch of (PMJAY) Ayushman Bharat Yojana in his Independence...
    Read more
    Best Health Insurance Plans in India 2022
    Finding the best health insurance plan from so many different health insurance companies can get confusing for many...
    Read more
    Best Maternity Insurance Plans
    Maternity insurance offers comprehensive coverage for medical expenses incurred during pregnancy, including the cost...
    Read more
    Best Health Insurance Plans for Senior Citizens in 2022
    Considering the increase in medical inflation in India, buying adequate health insurance for your loved ones has...
    Read more
    10 Major Benefits of Ayushman Bharat Yojana
    Pradhan Mantri Jan Arogya Yojana (PM-JAY) is the second component under Ayushman Bharat Scheme. PM Narendra Modi...
    Read more
    top
    Close
    Download the Policybazaar app
    to manage all your insurance needs.
    INSTALL