India Modi launches health insurance for 100 million families before the elections

NEW DELHI (Reuters) – Indian Prime Minister Narendra Modi on Sunday launched the world's largest health care program to provide free health services to half a billion people, which could boost his chances of getting involved. in the national elections next year.

The program, which the government describes as "Modicare", will provide 100 million families, or about 500 million poor, with health coverage of 500,000 rupees per year for the free treatment of serious diseases.

These measures are Modi's latest attempt to reform a public health system facing a shortage of hospitals and doctors. In recent years, the government has also capped the prices of drugs and critical medical devices and increased funding for health.

But critics say the system was hastily launched to gain political gain and lacks sufficient funds to support it.

India spends only about 1% of its GDP on public health, one of the lowest in the world, and the Ministry of Health estimates that this funding leads to "catastrophic" expenditures that weigh in on poverty every year for 7% of the population.

"This is the largest health care system in the world, benefiting more than the combined population of the United States, Canada and Mexico," Modi said after launching the national plan for Ranchi, the capital of the country. Jharkhand.

No separate registration would be necessary for the system and people could check online if they were eligible, Modi said.

Vinod K Paul, a senior NITI Aayog official, told Reuters in an interview last week that the benefits would also be available in hundreds of private hospitals.

"India's health system will never be the same. It's a turning point, "he said. Private hospitals and pharmaceutical companies are waiting for the plan to stimulate their activities.

The president of the Indian company Apollo Hospitals Enterprise, Prathap Reddy, described the operation as "revolutionary," while Jefferies analysts said companies such as Healthcare Global Enterprises and Narayana Hrudayalaya could benefit.

The plan will initially be deployed in 27 states, where the federal government will assume 60 percent of the costs and 40 percent of the costs will be borne by state governments.