[The abysmal lack of public network of healthcare facilities - primary
healthcare included, and the studied reluctance to remedy that woeful
situation and substitute such urgently needed move with deft hoodwinking
the public with measures meant to cater to the greeds of the corporate
healthcare and private insurance industries are the defining markers of
this year's budget and its much trumpeted and utterly deceitful promise of
universal healthcare.

That's the sum and substance.]
Exposing the mirage of ‘Modicare’: Jan Swasthya Abhiyan
ON 21/02/2018
<https://kafila.online/2018/02/21/exposing-the-mirage-of-modicare-jan-swasthya-abhiyan/>
 BY NIVEDITA MENON <https://kafila.online/author/nivmen/>IN CAPITALISM
<https://kafila.online/category/capitalism/>, DEBATES
<https://kafila.online/category/debates/>, EVERYDAY LIFE
<https://kafila.online/category/everyday-life/>

*Statement by JAN SWASTHYA ABHIYAN*

The Union Budget 2018-19 makes tall claims, with no clear road map for the
health sector, one that is sensitive to the needs of the poor and the
vulnerable population of India.

The allocations for Ministry of Health and Family Welfare (MoHFW)
(including for AYUSH) have increased from Budget Estimate of Rs. 50,281
crore in 2017-18 *Rs. 56,226 crore in 2018-19*.

However, from 2017-18 (Revised Estimate) the increase is much lower, a mere
Rs. 1374 crore, or just about 2.5 percent. This is a decline in real terms
if we account for inflation, and Union Budget allocations for the health
sector have stagnated at 0.3 percent of Gross Domestic Product (GDP). The
2017 target of National Health Policy (NHP) is 2.5 percent of GDP as health
expenditure by the Government (both Centre and States) by 2025. However,
with central allocations stagnating at the current 0.3 percent of GDP, it
would not be possible to achieve this target.

*The ‘Modicare’ mirage*

The announcement of National Health Protection Scheme (NHPS) touted as
“world’s largest government funded healthcare programme” (termed ‘Modicare’
by sections of media) with 50 crore prospective beneficiaries is
accompanied by an allocation of just Rs. 2000 crores.

Some facts about this scheme:

·       *This is not a new scheme*, in fact it was announced in the 2016
budget – the only difference being that the sum assured was 1 lakh which
has been raised to Rs 5 lakhs cover as proposed now. it could not be
operationalized over the *last two years – and last year even 50% of its
funds could not be spent.*

·       *The **reason for failure of this scheme is that many large states
already have established health insurance schemes in place* and for over
95% of requirements, the existing ceiling of Rs 1.5 lakhs is quite
adequate. So increase in coverage under the new scheme offers hardly any
advantages to the people being covered. The reason for increasing coverage
is to satisfy a totally different set of actors, as we see in the next
point.

·      *The existing rates for reimbursement were too low for participation
of corporate hospital chains. *Raising of the sum assured to 5 lakhs this
year was not necessary. In most circumstances the earlier sum assured of Rs
1.5 lakh was quite adequate, and disease specific exceptions could have
been made when necessary. The increase to Rs 5 lakhs has been done mainly
to address the demand of the corporate sector. The other key stakeholder
seeking a slice of this pie is commercial insurance companies.

·       *Over half the target beneficiaries proposed to be **covered under
the NHPS already stand covered today by existing government supported
schemes*. What would indeed have been a step forward is if it covered
out-patient treatment as well – but that is lacking.

·       *This scheme does not address the problems associated with existing
Rashtra Swasthya Bima Yojana (RSBY)*, *of which it is an expanded
version*. RSBY
has not been successful in reducing healthcare costs for the poor. Many
states have in fact opted out of RSBY in favour of state-run schemes, and
some states are trying out the trust-based model. A recent comprehensive
review on various studies related to RSBY (Prinja, 2017) revealed that
in a *majority
of studies (8 out of 14) there was increase in Out of Pocket Expenditure
related to RSBY, while only 2 of 14 studies showed reduction in
expenditure. *NSS data on RSBY shows that enrolment is quite low – only 57%
of those eligible are enrolled. And less than 12% of the eligible persons
got their hospitalization covered through RSBY.

·       *T**he National Health Mission with a 30,000 crore budget covering
the entire 130 crore population is a much larger scheme than this one,
touted as “**the world’s largest government funded health care programme.”*

This line has been repeated by the Prime Minister himself. But more
importantly:

*Why is health care being equated with health insurance and not public
health services?*

*Key public programmes underfunded*

The allocations for maternal and child health in the budget are covered
under the Reproductive and Child Health (RCH) component of National Health
Mission. *In 2018-19 (Budget Estimate BE) the budget for RCH has declined
by 33 percent from 2017-18 (Revised Estimate RE).* Along with this we must
note that the allocation for *Pradhan Mantri Matru Vandana Yojana *(PMMVY),
which was earlier called the Maternity Benefit Scheme, has also decreased
by 8 % over 2017-18 (Revised Estimate). Thus, overall there is a reduction
in allocations for schemes/programmes devoted to maternal and child health.

The announcement of allocation of Rs. 1200 crore for the Health and
Wellness Centres (HWCs) is a step towards strengthening primary healthcare.
However, an announcement for establishment of HWCs was made in the last
year’s Union Budget also, but till date there have been no examples of
these centres getting established anywhere in the country while the
government has invited contribution from the private sector in the
establishment of HWCs. This is not a positive move for India where out of
pocket (OOP) expenses are already high. Current allocations will pay for
only about 10,000 HWCs – less than 7% of what is required.

Although there has been an announcement for establishment of 24 new Medical
Colleges by upgrading District Hospitals, the allocation for this
particular sub-head under NHM has decreased from Rs. 3300 crore in 2017-18
(RE) to Rs. 2888 crore in 2018-19 (BE), a decline of about 12 percent.

Gradually the public health system is being weakened by drying up resources
for government schemes such as the National Health Mission. There is a
visible failure in addressing the critical issues of health system
strengthening, such as access to generic medicines and diagnostics, freeze
on recruitments in health sector, and contractualisation of health
workforce.

The Union Budget 2018-19 thus, continues to neglect the public health
system and instead increasingly focuses on enhancing the role of private
sector in healthcare. Moving towards an insurance-based model of healthcare
at the expense of strengthening public provisioning would lead to
disastrous results for a country like India where a large section of
population who is poor and vulnerable depends on public provisioning of
healthcare.

Jan Swasthya Abhiyan urges the government to follow recommendations for
increasing the budget to at least 2.5% of GDP as envisaged in the National
Health Policy, accompanied by strengthening of the public provisioning of
healthcare to address needs of the common people, and not the private
sector whose exploitative practices are widely known and recently stand
further exposed.

A range of public policy innovations are urgently needed to ensure health
and health care for all the people of this country:

   - public systems to ensure adequate supply of free medicines
   - upgrading of Primary Health Centres and Community Health Centres
   - community accountability of public health services
   - strengthening of  primary health care in rural and urban areas linked
   with District health systems, and
   - establishment of Right to Health Care

*The Jan Swasthya Abhiyan (JSA) was formed in 2001, with the coming
together of 18 national networks working on public health.*

-- 
Peace Is Doable

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