Meghalaya targets universal health insurance

North Eastern state of Meghalaya has undertaken an ambitious plan to bring all its three million population under a health insurance plan. The state has roped in International Finance Corporation (IFC), an arm of the World Bank (WB), to assist it in “designing and implementing” the insurance plan, including promoting private sector participation.

 

If implemented, Meghalaya would probably become the first state in India to achieve universal health insurance cover, which is particularly to benefit those from low and middle income group who are currently without any health coverage.

“Through this first-of-its kind scheme in India, Meghalaya will be able to expand healthcare services to all,” said Donald Wahlang, the commissioner and secretary of the state’s department of health and family welfare. “In the long term, it will help address shortage of trained medical and paramedical staff in the northeast.” Meghalaya had launched India’s national insurance scheme Rashtriya Swasthya Bima Yojna in 2009, demonstrating a commitment to strengthen health infrastructure in the state.

The project will be implemented in two phases. In the first phase, the plan will extend insurance coverage to over 80% of people not covered by Meghalaya’s current programme. The second phase will include coverage for a broader range of diseases and tertiary health care delivery, all under higher financial cover.

“By introducing an efficient and independent paying mechanism, the project will promote private sector participation in offering healthcare to the insured,” said Karin Finkelston, IFC vice-president for Asia-Pacific. “Increasing the paying capacity of the rural poor will encourage the private sector to provide services in smaller and remote towns and villages,” he added. The project is in line with IFC’s strategic focus of stimulating development in economically stressed regions of India, including the northeast.

“With steep health expenditures affecting the poor, the government-sponsored health insurance schemes offer new possibilities towards attaining universal coverage,” said Julie McLaughlin, World Bank sector manager for health, nutrition and population for South Asia.

This is the second intervention in healthcare by IFC in Meghalaya. IFC had advised the state government in 2010 over providing quality healthcare and training at the Shillong hospital and medical college.

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