NITI Aayog vice-chairman Rajiv Kumar calls Modicare scheme 'game changer', says financing not a constraint

New Delhi: Brushing aside criticism of the newly announced mega healthcare scheme, Niti Aayog Vice-Chairman Rajiv Kumar has said it is a "game changer" and revenue from the 1 percent additional cess would be enough to meet the funding needs.

Finance Minister Arun Jaitley in his budget for 2018-19 announced the National Health Protection Scheme (NHPS) announced to provide health insurance cover of Rs 5 lakh to over 10 crore poor and vulnerable families.

"This scheme is a game changer," Kumar told PTI as he regretted that "a completely baseless and false propaganda" is being spread against the ambitious scheme of the Modi government.

File image of Rajiv Kumar, vice chairman, NITI Aayog. PIB.

File image of NITI Aayog vice-chairman Rajiv Kumar. PIB

Former Finance Minister and senior Congress leader P Chidambaram have termed the proposal as "a jumla" with no money provided in the budget for it.

On funding of the scheme envisaging to cover about 50 crore people, the Niti Aayog vice-chairman said the allocation for the health sector has been raised by Rs 6,000 crore.

Moreover, there is an existing facility of Rs 2,000 crore for the ongoing RSBY scheme.

The government has provided further financial space to the health ministry by establishing an alternate mechanism Higher Education Financing Agency (HEFA) for funding capex needs of the health education project.

And in addition, the 1 percent extra education and health cess proposed by Jaitley in the budget will annually yield Rs 11,000 crore. All these combined would be more than adequate to meet the financing needs of welfare programme.

The Centre and the state governments, Kumar added, will only have to bear the insurance premium which was likely to be very moderate. It will benefit from bulk procurement and competition.

"Like all central schemes, it will have 60-40 ratio. Those states which want to join the scheme will contribute 40 percent. North East states will pay 10 percent," he added.

Many experts have questioned the ability of the government to fund such as ambitious scheme and also the availability of infrastructure to provide medical facilities for a large number of people across the country.

On the infrastructure for health services providers, Kumar said the scheme will encourage private sector enterprises that will come up rapidly.

"The bottom line is that financial resources will not be allowed to be a constraint on this game-changing scheme," he insisted.

According to senior Niti Aayog officials, the mega healthcare scheme will cost up to Rs 12,000 crore annually and it is likely to be launched either on 15 August or 2 October.

All poor people identified by the Socio-Economic and Caste Census 2011 will be eligible for the scheme.

It will be linked to Aadhaar but will not be a mandatory condition for availing the benefit.

Updated Date: Feb 04, 2018 19:59 PM

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