Centre ignoring call for GST rate cut on health insurance premiums: MP – The Hindu

DMK Rajya Sabha member Kanimozhi N.V.N. Somu said the Union government was turning a blind eye to the health insurance sector’s call for a GST rate cut on health insurance premiums and granting infrastructure status to healthcare facilities to boost access to quality healthcare.

In her speech in the Rajya Sabha, she said it was important to protect the health of all citizens from the risks associated with any future pandemic. “To mitigate these risks, the role of the health insurance sector becomes even more vital, necessitating a collaborative effort to improve health insurance penetration and development of healthcare facilities across the country,” she stated.

She noted that the current 18% GST rate imposed on health insurance premiums was one of the largest contributing factors to high prices. “The sector has called for a GST rate cut on health insurance premiums and granting infrastructure status to healthcare facilities to boost access to quality healthcare. But the government is turning a blind eye in this regard. In fact, there is a need for GST exemption for several life-saving medicines, equipment and services,” Dr. Kanimozhi said.

She said that as per industry reports, an estimated 56 crore individuals from lower middle class to upper middle class did not have any health insurance cover, and represented about 40% of India’s population.

“Apart from the lack of awareness about the importance of health insurance, the costs associated with even standard insurance products such as ‘Arogya Sanjeevani’ was a deterrent with prices ranging between ₹15,000 to ₹18,000 per year for a family of two adults and two children with the senior-most member’s age being 45 years,” she noted.

The MP stressed on the need to increase budget allocation for medical care and infrastructure to six per cent of the GDP. The budgetary allocation from the Union government was absolutely inadequate to achieve quality healthcare for all, she said.

She pointed out that Tamil Nadu topped the country in all healthcare indices. “Be it the doctor-patient ratio, hospital beds-patient ratio or hospitals/PHCs per population, T.N. has developed way ahead of other States in the country.” “While there is an urgency to focus on all three levels of primary, secondary and tertiary healthcare, it is imperative that the Union government look towards improving primary healthcare,” she added.