Modicare – A panacea for healthcare woes in India? A GlobalData View

The National Health Protection Scheme (NHPS), launched by the Indian government in the Union Budget of 2018-19, has a large scope to address some burning healthcare issues and provide affordable quality healthcare to the below poverty line families in India, says leading data and analytics company GlobalData. Dubbed as ‘Modicare’, the world’s biggest government-funded healthcare program seeks to extend health insurance of up to INR500,000 (USD7,700) per family per year, covering over 100 million financially vulnerable families, and benefitting about 500 million people. Under the NHPS, four in ten Indians can receive secondary and tertiary care in government and private hospitals. Over the past couple of years, the preference for private healthcare providers has been increasing as the state-run healthcare systems have failed to meet the needs of patients. Availing private health services means the expenses are borne by the patients themselves. According to the National Health Accounts (NHA) 2014-15 estimates, over 67% of the current health expenditure in the country is out-of-pocket expenditure.” NHPS will have to overcome many challenges and funding may not be the most critical of them. Among other challenges, the scope and complexity associated with implementing the scheme would require concerted efforts by the respective State governments. Currently, 24 States have their own healthcare programs. The State governments may be reluctant to replace their own healthcare schemes with the newly announced NHPS. Political rivalry and compulsions may also hinder the rollout. On 14 February 2018, West Bengal became the first State of India to opt out of ‘Modicare’. The execution of the scheme requires a strong public-private partnership model. The central government will be very keen to launch and roll out this scheme at the earliest, especially in light of the fact that the national elections are just about a year away. It remains to be seen how the government plans to surmount the financial, political, logistical, management and infrastructural challenges.

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