Business Standard

Cabinet approves ModiCare

- VEENA MANI & SANJEEB MUKHERJEE

The Cabinet has approved the Ayushm an B ha rat or National Health Protection Scheme (NHPS), also referred to as Mo di Care, with budgetary support of ~160 billion for 2018-19 and 2019-20. Proposed to be portable across India, the scheme is intended to provide healthcare for at least 40 percent of the population or 107.4 million households (500 million people ). Each family will be entitled to health cover up to ~500,000 a year.

The Cabinet has approved the Ayushman Bharat or National Health Protection Scheme (NHPS, also referred to as ModiCare), with budgetary support of ~160 billion for 2018-19 and 2019-20.

Proposed to be portable across India, the scheme is intended to provide health care for at least 40 per cent of the population or 107.4 million households (500 million people). Each family will be entitled to health cover up to ~500,000 a year.

The Cabinet also gave a nod to continuing the National Health Mission (NHM) till 2019-20, for a cost of ~852 billion. NHM provides free services to those below the poverty line and will complement the NHPS, said officials.

NHPS will replace the Rashtriya Swasthya Bima Yojana (RSBY), where the annual health cover is up to ~30,000. To bring down costs, state government­s will calculate package rates for treatment under the scheme. The cabinet approval includes setting up of nodal agencies by states or even a trust to run it. The health minister will head the scheme and take all decisions on policy.

Coverage will be based on the Socio Economic Caste Census (SECC), which identifies poor in seven defined categories of deprivatio­n. Some, such as Rajasthan and Gujarat, cover

people other than those listed in these categories. The Karnataka government recently announced it would cover all state residents in its health insurance scheme, while West Bengal has decided not to implement NHPS.

The Union health ministry and NITI Aayog had called state health secretarie­s to apprise them about NHPS. The Centre had earlier thought of an insurance scheme of ~100,000 but did not finalise it, as many states already had

active schemes for more than that amount. Some states have provided insurance of around ~250,000 or even more in some cases. Transfer of funds will be through an escrow account directly, so that funds are transferre­d in an efficient and timely fashion, went an official statement. Transactio­ns will be paperless and cashless. Private hospitals may also provide treatment under this scheme, once empanelled with the government, it added.

A big challenge is to integrate the central and state schemes. There could be large overlaps and cost ramificati­ons, since SECC data are not seeded with Aadhaar, the citizen identifica­tion. There could also be a possibilit­y of exclusion of beneficiar­ies. So, states would be provided the flexibilit­y to expand their existing schemes till the time SECC data was seeded with Aadhaar, say experts.

Initially, the scheme was estimated to cost ~250 billion from both Centre and states for 2018-19 and 2019-20. This

assumed ~650 per family from the Centre and ~432 from the states, including the administra­tive cost.

Existing energy norms to continue for 14 urea units

The government also allowed 14 urea units, which could not meet the new energy norms under the 2015 policy, to continue with the existing norms for a period of two years with token penalties.

Surrogacy Bill gets nod

The Cabinet also approved the surrogacy Bill, which aims to regulate the surrogacy market in India. The intention is non-commercial­ise surrogacy. Commercial surrogacy and sale and purchase will be prohibited.

~21.61 billion for silk industry

The Cabinet approved “Integrated Scheme for Developmen­t of Silk Industry” for sericultur­e sector with an outlay of ~21.61 billion for three years ending March 31, 2020.

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