Healthcare financing refers to the system that pays for the medical care of individuals, including but not limited to government plans, private insurance and out of pocket payments by health care consumers. The idea of Healthcare financing aims to alleviate or lessen the financial burden and/or improve healthcare access.
The following are some government sponsored strategies to provide financial support for healthcare in India:
Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY): This program provides free care to the specified economically weaker sections of the population;
Rashtriya Swasthya Bima Yojana (RSBY): This program provides health insurance to poor families;
Employees’ State Insurance Scheme (ESI): This program provides a medical benefits scheme for workers in the organized sector;
Central Government Health Scheme (CGHS): This scheme provides health benefits to Central Government servants and pensioners.
The Role of Private Health Insurance
There is a growing army of private health insurers in India offering individual, family, and corporate health covers. Insurers pay for bed and boarding, hospitalisation charges, surgeries, and outpatient procedures. Despite government programs and multiple insurance schemes, a substantial amount of health cost continues to be incurred by individuals out of pocket. There is a financial burden to low-income people in India.
Public-private partnerships for healthcare serve to diversify resources for healthcare infrastructure and financing. Private hospitals, digital health companies and insurers support healthcare access.
Telemedicine, digital payments, and health fintech are the latest ways in which financing for healthcare is improving efficiency in the delivery of treatment. Online platforms are now providing cashless treatments, crowdfunded medical expenses and AI-enabled insurance solutions.
India is trying to provide Universal Health Coverage (UHC) through a reduction in out-of-pocket expenditures and enhanced financial protection supported by coordinated policies, increased public spending on health, and new financing methods.
Healthcare financing in India is an evolving mix of public policy, private insurance, and digital technological development, in an attempt to provide improved access and affordability for health and health services. The next step is to strengthen financial protection and then collectively work towards ensuring quality health services for all.
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