India: Modicare to have a domino effect on the entire healthcare landscape
Source: Asia Insurance Review | Nov 2018
The government’s ambitious social health insurance programme, the Pradhan Mantri Jan Arogya Yojana (PMJAY) or Modicare as it is dubbed, will transform the Indian health insurance landscape Bajaj Allianz General Insurance CEO Tapan Singhel, has said.
In an interview with Livemint, Mr Singhel said that with PMJAY, about INR200bn ($2.7bn) will be pumped into the healthcare sector which will improve medical infrastructure even in smaller cities and towns. Demand for healthcare is going to increase which will make the healthcare set-up feasible even in smaller locations.
“It will lead to standardisation, treatment protocols and price discoveries, all of which will help retail health insurance too,” said Mr Singhel.
He said that all of these developments might not play out immediately, but in the next 5-7 years after which PMJAY would have completely transformed healthcare.
PMJAY, launched by prime minister Narendra Modi on 23 September, provides annual coverage of INR500,000 per family to 100m households or around 500m people from the lower economic strata.There is no cap on family size and age in the scheme, ensuring that nobody is left out.
PMJAY will provide cashless and paperless access to services for the beneficiary at the point of service.
Over 10,000 hospitals both public and private, have been empanelled under the scheme, and as many as 32 states and union territories out of a total of 36 have signed MoUs with the central government to implement the scheme. A