Modi Launches 'World's Largest' Health Insurance SchemeTop Stories

September 24, 2018 07:35
Modi Launches 'World's Largest' Health Insurance Scheme

(Image source from: Scroll.in)

Narendra Modi led government has launched one of the world's major publicly funded health insurance scheme, set to cover about 500 million underprivileged people.

The Ayushman Bharat programme, dubbed "Modicare" after Prime Minister Modi assured health cover worth 500,000 rupees ($6,900) to each poor family to treat serious illnesses.

At the occasion of its official rollout in Ranchi, on Sunday, Modi claimed that a government scheme at "such a grand scale is not being carried out anywhere in the world".

Good quality, accessible healthcare

The prime minister said the scheme will transform India into a medical hub in the future and called it "a big step towards providing good quality and accessible healthcare to the poor of India.

"Over 100 million families will benefit," Modi said.


The programme, which was primarily proclaimed as part of the annual budget in February, is expected to cost the central and 29 state governments $1.6 billion a year in total.

Expenses will be shared by the central and state governments at a 60 to 40 ratio in most states and funding will be increased gradually according to the demand.

Scheme with no discrimination

On Sunday, Modi handed medical cards out at the launch in Ranchi, calling it a "historic day" for the country.

The government is aiming to set up 50,000 wellness centers across the country over the following four years, he said.

Related content: Malnutrition, Child Deaths Outbreak India's Tribal People

"The scheme will not have any distinguished plans on the basis of sect or caste. There will be no discrimination based on any race or any fraternity," said Modi.

India spends just 1.5 percent of its Gross Domestic Product (GDP) on healthcare compared to a global average of six percent.

The country's overburdened public health system is plagued by a lack of hospitals and doctors and record people use private clinics and hospitals if they can afford to.

But a private consultation can cost 1,000 rupees ($15), a huge sum for millions living on less than 140 rupees a day.

Over 60 percent of the average family's spending goes on medicines and healthcare, the government estimates.

"There has been a lot of concern regarding the human resources, but I think within 10 to 15 years, our health sector would become a world-class health sector," Ilias Ali, a doctor based in the northeastern city of Guwahati, told Al Jazeera.

Specialists have acclaimed the latest programme but then say it should have comprised primary day-to-day healthcare instead of just secondary and tertiary care for further serious and long-term treatment.

"Modicare does not extend to primary healthcare, which, we believe, is the weakest link in the provision of public health in India," Rajiv Lall and Vivek Dehejia of the IDFC Institute think-tank said in a column for the Mint newspaper.

"The crucial point is that poorly delivered primary care inevitably increases the burden on health and finance at the secondary and tertiary levels down the line," they said.

By Sowmya Sangam

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