'Modicare', World's Largest Health Care Scheme To Cost 11,OOO Crore Per Year

| February 2 , 2018 , 18:00 IST

The government's 'National Health Care Scheme' has been announced on Thursday in Union Bidget 2018. Under this scheme, the government have plans to provide 'Health Insurance' for about half of the country's population and state. This scheme would require an estimated funding of Rs 11,000 crore in central and state government funding each year.

The scheme, that has been called "Modicare" largely on the lines of Obamacare, 100 million families, or about 500 million poor people, with a health cover of 500,000 rupees per year for free treatment of serious ailments. 

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The mega health insurance scheme for the poor will give the sector a big boost but could cost over Rs 1 lakh crore, according to some independent estimates. Based on the cost of the existing Rashtriya Swasthya Bima Yojana (RSBY), back of the envelope calculations show it would require Rs 30,000 crore.

The National Health Protection Scheme (NHPS) will provide 100 million families with medical coverage of up to Rs 5 lakh per year for secondary and tertiary care hospitalisation. 

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While talking about the health protection scheme Finance Minister Arun Jaitley said,"I don't know if 'Obamacare' was successful or not, but people will one day say 'Modicare' has been successful,"

The government has not yet made any allocations for the scheme. "Adequate funds will be provided for smooth implementation of this programme," Jaitley added. 

Several state government has their own health care schemes but they are generally small or poorly implemented.

The government said the scheme would be "the world's largest government-funded health care programme" but critics have raised doubts whether 20 billion rupees in federal funding is enough to support the programme for 2018-19.